Study of Private Equity Acquisitions in Cardiology Published

July 5, 2024—The American College of Cardiology recently announced the publication of a study evaluating the growth of acquisition of cardiology clinics by private equity firms. The findings were published online by Victoria L. Bartlett, MD, et al in JACC and presented at the AcademyHealth 2024 annual research meeting held June 29 to July 2 in Baltimore, Maryland.

Rishi K. Wadhera, MD, a cardiologist at Beth Israel Deaconess Medical Center and Associate Professor at Harvard Medical School in Boston, Massachusetts, is senior investigator of the study.

“Policymakers and clinicians have raised concern about the growing presence of private equity in other medical specialties,” commented Dr. Wadhera in the ACC press release. “Although cardiology is an attractive target for private equity firms, little is known about the number and types of practices that are being acquired. Private equity acquisitions in other specialties have been shown to decrease quality and increase costs, so it is critical to understand the impact on cardiology.”

As summarized in the ACC press release, the study showed that 342 cardiology clinics have been acquired by private equity firms during the past decade, with > 94% of those occurring between 2021 and 2023. The investigators highlighted the critical need to monitor the effects of private equity acquisitions on quality of care and outcomes for patients with cardiovascular disease, as well as procedural utilization, as this practice continues to grow.

The investigators reported the following findings:

• Between January 2013 and September 2023, private equity firms acquired 41 outpatient cardiology practices, corresponding to 342 clinic sites.
• The number of clinic sites acquired per year increased from zero in 2013 to 215 in 2023.
• 324 acquisitions occurred from 2021-2023.
• 64 of these clinics were acquired more than once.
• Acquisitions occurred in 20 states—Florida had the most, followed by Texas and Arizona.

The study also found that acquisitions tended to be highly concentrated in the same areas, and that the highest poverty communities were less likely to be acquired compared to the wealthiest communities.

The press release noted that in an accompanying editorial comment in JACC, ACC Past President Edward Fry, MD, emphazied the equal importance of understanding what is enticing cardiologists to be acquired by these ventures.

“Is it just about the money or is the move to private equity a symptom of more foundational problems with the current practice of medicine and cardiology?” stated Dr. Fry. “Clinicians, health system administrators, policymakers, and the public need to define the elements of clinical practice that encourage a growing number of cardiologists to seek out alternative employment models. Addressing them will be necessary to truly transform care and promote equity and value.”