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Who employs your doctor? Increasingly, a private equity firm

nytimes.com

71–80 of 415 posts

Re: Who employs your doctor? Increasingly, a private equity firm

#71
post #39

Earlier quoted context omitted.

As they acknowledge, this factor is extremely difficult to isolate from demographics, geography, religion, etc.

> As they acknowledge, this factor is extremely difficult to isolate from demographics, geography, religion, etc. No? They used "a within-facility differences-in-differences design to address nonrandom targeting of facilities" so they're measuring the change in outcomes at the same facility before & after takeover.

That is not conclusive either. If PE had not acquired them, may be they would have been worse or better? This analysis doesn't answer that.

Re: Who employs your doctor? Increasingly, a private equity firm

#73

PE is essentially buying all needs of a first world human. Medicine, homes, essential services, farmland, in an attempt to extract margin from the last possible places they can. It feels like we’ve re entered the 80s again but worse where now we have 100 billionaires buying up farmland under the guise of it being better that they own it rather than the farmers for… reasons. I think this is essentially late stage capi…

I wonder if public co-ops can rival the influence / power of PE firms?

Public co-ops do not get free FED money. Gap inducing inflation has been forced upon us, certain players get to use the leverage to buy up everything, the rest are left arguing over scraps.

This is a side-effect of a central banking system without proper checks and balances.

Re: Who employs your doctor? Increasingly, a private equity firm

#74

To me it seems like PE has simply discovered a loophole in the system. We want a system where creating value for people is rewarded, but PE has found a way to legally get the rewards without improving society. Normally this is called a scam or a fraud, and there are laws for standard stuff like taking people's money without giving them what you promised. For PE however, they've found a way around it, using the machin…

More like running many kinds of businesses has become more hassle than its worth. Medical malpractice premiums are very high, insurance payouts are stingier, and medicine has become more capital intensive than ever as newer medicines and diagnostics increasingly dominate, along with an aging population that needs more intensive care. Doctors report being more burnt out than ever. It's an attractive proposition to out…

This would be a good argument if it were only medical practices where PE was active and having a malign effect. But that's most definitely not the case.

Re: Who employs your doctor? Increasingly, a private equity firm

#75
post #30

Earlier quoted context omitted.

But it is not difficult to isolate from common sense. No one should profit from denying someone healthcare. All systems have ration care but it is immoral for someone to profit by denying care. Profit motive does not make for a good healthcare system.

Should a Lasik surgeon provide Lasik to everyone regardless of their ability to pay?

[deleted]

Re: Who employs your doctor? Increasingly, a private equity firm

#76
post #25

PE is essentially buying all needs of a first world human. Medicine, homes, essential services, farmland, in an attempt to extract margin from the last possible places they can. It feels like we’ve re entered the 80s again but worse where now we have 100 billionaires buying up farmland under the guise of it being better that they own it rather than the farmers for… reasons. I think this is essentially late stage capi…

>It feels like we’ve re entered the 80s again but worse where now we have 100 billionaires buying up farmland under the guise of it being better that they own it rather than the farmers for… reasons. I don't get it. Are the billionaires buying the land from the farmers at gunpoint? If it's so disastrous for the farmers to sell, why did they sell in the first place?

It’s more a tragedy of the commons. People can act 100% rational at 100 ft. but at the same time be selling their souls collectively at 1000 ft. So the question becomes, “should society work to mitigate the tragedy”?

Blackrock buys all the land. What do we do? Doesn't matter if they did it at gunpoint or not, the outcome is not desirable, and we write and enforce the laws.

Re: Who employs your doctor? Increasingly, a private equity firm

#77
post #27

Earlier quoted context omitted.

The veterinarian world is doomed. Increasingly PE is taking over entire neighborhoods when it come to vet hospitals. This is led to increased wait times, lower standards of care, higher cost to consumers and higher pet mortality rates. That can very well translate to human healthcare.

But the barriers to starting a new vet are pretty low. If existing vets are inadequate, new ones can start.

No. My late father started his own solo vet practice in 1983, in that less capital intensive environment, and he still required a substantial amount of seed capital to procure and retrofit the building to meet regulations and have enough in the tank to keep it going through the initial lean business years. (There were other complications related to the specific property and title liens not relevant here.) In these days it's not much different than a solo medical practice in terms of startup costs.

Later VCA and Banfield asked him every year to sell out and he never did, but he was an already established practice by then. I can see why new vets are much less likely to embark on it.

Re: Who employs your doctor? Increasingly, a private equity firm

#78
post #30

Earlier quoted context omitted.

As they acknowledge, this factor is extremely difficult to isolate from demographics, geography, religion, etc.

But it is not difficult to isolate from common sense. No one should profit from denying someone healthcare. All systems have ration care but it is immoral for someone to profit by denying care. Profit motive does not make for a good healthcare system.

> But it is not difficult to isolate from common sense. No one should profit from denying someone healthcare

How does one profit from denying services?

Re: Who employs your doctor? Increasingly, a private equity firm

#79
post #52

Earlier quoted context omitted.

Nobody should profit from healthcare at all. I don't care if doctors and nurses and board members and janitors all make fuck you money, or if hospitals reinvest tons of money to perpetually have state of the art facilities. But the profit dynamic is too much.

How would vaccines and new drugs be invented without any profit incentive?

Don't people live long enough already? We can't pay for our retirees.

Old age medical care costs $1M+. I know the morally correct thing to do when I get old - give that money to kids instead.

Vampires.

Re: Who employs your doctor? Increasingly, a private equity firm

#80
post #38
post #4

When possible, I prefer people who work for me to have incentives that are aligned with mine. PE-owned medical practices and even many private practices throw that out the window, with financial incentives to do procedures or run tests. I was talking to my wife’s obstetrician about this last week and he also feels strongly about it. He’s paid a flat salary and gets no financial benefit for a c-section vs. an inductio…

Physicians are absolutely reimbursed per procedure, per surgery, per test, etc. OB specifically has a higher concentration of employed doctors, but the hospitals are still reimbursed the same way, and these numbers are 100% taken into account when determining things like bonuses and promotions. But other specialties (like family med) are still dominated by private practices where physicians directly earn more by doin…

> 100% taken into account when determining things like bonuses and promotions

Eh, there's some truth to what you said but it's a bit of a stretch.

For bonuses, it depends on specialty and practice. In my current job I have zero incentive structure, period. If by some miracle, zero patients showed up on my shifts over the course of an entire year, I would make exactly the same as if I averaged 20 patients per day. I also don't get any reimbursed for any of the procedures I do -- 100% of that goes to the hospital. This is an increasingly common compensation model in pretty much every nonsurgical speciality and even in a small number of surgical ones (Ob/Gyn, as you mentioned).

As for promotions, I don't think that's true at all. First, physicians tend to have a very flat hierarchy outside of academics. (At many hospitals, you're either CMO, a department chief, or just some guy.) What this means, in my personal experience, is that promotion is such a remote possibility that it's something that 80 to 85% of physicians don't spend any time thinking about. Second, productivity is not a principle criterion for promotion. When a hospital or clinic promotes a physician, they take a large chunk of that physician's clinical time and replace it with administrative work. If you're trying to maximize revenue, your most clinically productive person is precisely the last person you want to do that with.

> But other specialties (like family med) are still dominated by private practices

Family medicine is definitely not dominated by private practices, at least for new grads. Private practice is quickly going extinct everywhere except for those specialties that have a high proportion of out-of-pocket payors (plastic surgery, dermatology, orthopedics) or those specialties where the demand is high but the supply is so thin that hospitals can find themselves battling with each other to sign contracts with the one of the few practices in their area (neurosurgery, otolaryngology, CT surgery in some parts of the country).

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