Feature Story: The private equity effect

Colliers panelists discuss how PE investments in physician groups affect HRE

By John B. Mugford

The Colliers private equity panel included (from left to right): Jorge Lopez of Midwest Vision Partners, Elliott Sellers of Anchor Health Properties, Mike Cromwell of MDVIP, Dave Davies of EY-Parthenon and moderator Libby Park of Hall Render Killian Heath & Lyman PC. (HREI photo)

As recently as 2001, about 60 percent of U.S. physicians were independent, meaning they owned and operated their own practice. In those days, most medical office buildings (MOBs) were multi-tenant, and most healthcare real estate (HRE) developers, owners and brokers usually found themselves doing business with independent doctors.

These days, however, an increasing number of MOBs are single-tenant, and a majority of HRE professionals find themselves serving employed physicians whose practices are owned by hospitals, health systems, insurers and – with increasing frequency – private equity (PE) firms.

A recent study commissioned by the not-for-profit Physicians Advocacy Institute and conducted by Washington, D.C.-based consulting firm Avalere Health found that – in a trend Avalere says was accelerated by the COVID-19 pandemic – only about 26 percent of U.S. physicians remained independent as of January 2022.

Of the almost 74 percent of physicians the survey found to be employed,

The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE

Existing Users Log In