Healthcare providers: is this crazy?

[Anonymous]

Office got bought up by private equity, and the new owners want to convert direct providers from contractors to employees
They're not offering any PTO, no mention even of the usual New Year's, Xmas, etc, and scanty benefits. Plus there's a clause that any insurance payments received after we leave whether voluntarily or involuntarily will be forfeited.
I am NOT signing, just wondering if this is industry standard now
Thoughts?

[Anonymous]

PE ruins everything.

This has been my observation in my field. That is why you should stay far away. Of course unless you are a boomer with less than 3 years to retirement- in which case PE is the way to go. Who cares about patients? Who cares about younger colleagues? Seemingly very few partners in the face of a good multiple.

I hope the over leveraged buyouts come due soon and they all fold. The way they make people practice medicine is pretty awful.

[Anonymous]

I work in consulting for medical practices and, 100% agree with PP. PE is awful and gaurenteed to run a successful practice into the ground.

Depending on ehat you are thinking about doing next, happy to make recommendations.

[Anonymous]

Give an example of a private equity firm, like a name. I want to know who to stay away from.

[Anonymous]

Anonymous wrote:PE ruins everything.

This has been my observation in my field. That is why you should stay far away. Of course unless you are a boomer with less than 3 years to retirement- in which case PE is the way to go. Who cares about patients? Who cares about younger colleagues? Seemingly very few partners in the face of a good multiple.

I hope the over leveraged buyouts come due soon and they all fold. The way they make people practice medicine is pretty awful.

What is the benefit for boomers near retirement in this case?

[Anonymous]

Anonymous wrote:Give an example of a private equity firm, like a name. I want to know who to stay away from.

Windrose. That is one example, and it's also an example of how bland the names are.

[Anonymous]

Anonymous wrote:

Anonymous wrote:PE ruins everything.

This has been my observation in my field. That is why you should stay far away. Of course unless you are a boomer with less than 3 years to retirement- in which case PE is the way to go. Who cares about patients? Who cares about younger colleagues? Seemingly very few partners in the face of a good multiple.

I hope the over leveraged buyouts come due soon and they all fold. The way they make people practice medicine is pretty awful.

What is the benefit for boomers near retirement in this case?

The boomers are the partners in the practice and own the practice.

The practice is purchased by PE and the boomers receive a lump sum.

Then the PE company tries to squeeze blood from a stone, prioritizing revenue over all else.

[Anonymous]

Anonymous wrote:Give an example of a private equity firm, like a name. I want to know who to stay away from.

It would be very difficult. You can’t recognize a PE owned group by their name. Most PE owned practices retain their original name- it’s just management and practice style that changes.

[Anonymous]

OP here, has anyone seen contracts like this? Front desk and non billing folk are getting PTO, though not much, and 401k match at the new owner's discretion
I have not heard of employee contracts with zero PTO and keeping any money still owed by patients and insurance companies

[Anonymous]

OP again, I am not sure of the sales terms of the outgoing owners, or if their contracts are cushier, or how ling they have agreed to stay. Do these terms seem typical?

[Anonymous]

I don't get it. What sort of business model are we talking about?

(Sorry, I'm a scientist in a publicly funded institution.)

[Anonymous]

Anonymous wrote:I don't get it. What sort of business model are we talking about?

(Sorry, I'm a scientist in a publicly funded institution.)

It is/was a private healthcare office. As a provider you can work on per diem plus percentage of collections for what you do, or get a (higher) percentage of collections only.
So you see a patient, the front desk collects a copay, and bills insurance, which can take 3 or more months especially if the patient has 2 insurances. Current contract is that the old office should pay you your percentage even if the money trickles in 6 weeks or 5 months later. The proposed contract is for a per diem plus percentage, but if you leave or are asked to leave, they keep any money that comes in later. So you have seen the patient, done the procedure, probably are still on the hook for any liability, but won't get paid. The PE keeps the money

[Anonymous]

Why don’t you and the other providers negotiate with the terms that are acceptable to you ?

[Anonymous]

Many times the pe is part of a fortune 500

[Anonymous]

Anonymous wrote:

Anonymous wrote:Give an example of a private equity firm, like a name. I want to know who to stay away from.

It would be very difficult. You can’t recognize a PE owned group by their name. Most PE owned practices retain their original name- it’s just management and practice style that changes.

Is it like Capital Women’s Care? A not obgyn doctor I went to once said they were all bought up by one group for insurance negotiation power but that all the doctors/offices are technically separate. Or like Foot and Ankle Specialists?