Elliot Cooperstone, Managing Partner of InTandem Capital, shares his views on the future of private equity in provider services where there has been recent legislative attention. Specifically, how and why the pendulum will return to favor PE investment in provider services due to the following:
- The sources of capital for physician practices are limited
- Many physicians wish to remain equity owners in their practice, and private equity is the only option that allows them to do so
- Private equity sponsorship provides a critical solution for the fundamental driver of physician practice consolidation, and that is lack of adequate reimbursement, which has been declining for years
- The country faces a growing need for access to care
