Private equity offers new option for ophthalmology practice consolidation

Ophthalmologists and ophthalmology practices are steering toward consolidation in a fragmented market, and private equity firms may offer a new option for physicians as the firms look to invest in the field.Private equity firms, investment management companies that make investments in operating companies or startup companies, have been focusing their attention more on the ophthalmology field over the last several years. For example, in May 2014, Varsity Healthcare Partners, a health care services-focused private equity investment firm, acquired Katzen Eye Group, one of the nation’s largest ophthalmologic and optometric services practices. Through this partnership, the two entities formed EyeCare Services Partners Holding LLC with the goal of consolidating successful vision care services practices and affiliated surgical centers in selected markets, according to a Varsity Healthcare Partners press release.