The loopholes PE built to buy physicians are starting to crack - Becker's ASC Review
beckersasc.com
The FTC is targeting private equity's physician roll-up playbook — and the legal loopholes that made it possible are showing their first real cracks.
Principal-Agent ProblemRegulatory CaptureVertical IntegrationAntitrust Theory
Theory Briefing
- The FTC's case against U.S. Anesthesia Partners and its private equity backer signals a possible third legal theory for challenging physician roll-up deals.
- Private equity firms built ownership structures specifically to sidestep laws barring corporate practice of medicine — those workarounds are now under scrutiny.
- Physician roll-ups consolidate independent practices under PE control, raising questions about whether competition and patient care suffer as a result.
- The cracking of these loopholes could reshape how private equity acquires and manages physician groups across the country.