Do you believe private equity investment will be more successful than the physician practice management companies’ attempt at consolidations in the 1990s?

PointFor many years, eye care has been considered “outside the nest” of traditional medicine, and now as the payer world is evolving and there are solid attempts to consolidate through ACOs, IPAs, mergers and acquisitions, we need to find a way to differentiate ourselves and jump back into that “nest.” It is more critical than ever that we proactively build strong relationships with payers and legislators. We must invite them into our world to help them understand who we are and where we fit in the health care continuum. Consolidation will no doubt dominate our industry. We need to find ways to share resources, reduce costs, create market share and build in efficiencies to sustain profitability into the future. In walks private equity, which is incredibly disruptive, but indeed a vehicle to assist in this consolidation effort. It is a high-risk/high-return venture that differs from that of the physician practice management companies of the past. While the window of opportunity may only be for the next few years, it is indeed something I encourage my colleagues to get educated about. In preparation for any talks, I would also add that group owners must be aligned and in consensus with one another. They must be disciplined about strategic planning, focused on practice culture and the patient experience, and ensure that they are entering these conversations for the right reasons.