BackTable / ENT / Podcast / Episode #45
Private Equity: Savior or Existential Threat?
with Dr. William Blythe and Dr. Drew Locandro
In this special collaborative episode, guest host Dr. Bradley Block talks with Dr William Blythe and Dr. Drew Locandro about the pros and cons of private equity, including a discussion of the key things to think about when considering selling your practice.
BackTable, LLC (Producer). (2022, January 27). Ep. 45 – Private Equity: Savior or Existential Threat? [Audio podcast]. Retrieved from https://www.backtable.com
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Dr. William Blythe
Dr. William Blythe is a private practice otolaryngologist in Alabama.
Dr. Drew Locandro
Dr. Drew Locandro is a practicing otolaryngologist and the founding partner of Northwest ENT in Georgia.
Dr. Bradley Block
Dr. Bradley Block is a practicing Otolaryngologist with ENT and Allergy Associates in New York.
In this episode of BackTable ENT, Dr. Bradley Block from ENT and Allergy interviews Dr. Drew Locandro (Northwest ENT and Allergy Center) and Dr. Bill Blythe (East Alabama Ear, Nose & Throat) about the benefits and pitfalls of opening their private practices to private equity companies.
Private equity can provide many benefits to community practitioners. Outside investment can contribute more money to marketing and hiring new supportive positions. Additionally, it also levels the playing field for older and younger doctors in the practice in the context of objective management. Finally, private equity firms can take care of administrative duties, such as billing and accounting, thus increasing the free time available to physicians.
On the other hand, retaining complete ownership of a medical practice can provide physicians with more satisfaction and decrease rates of burnout. Dr. Blythe notes that a physician can still retain total ownership of his practice but still outsource basic administrative duties, such as general accounting.
Finally, the doctors discuss the concept of a “second bite” deal. Oftentimes, the original smaller private equity firm will sell the medical practice to a larger private equity firm for a profit. Risks of the “second bite” include undervaluation of the practice as well as loss of physician control. However, Dr. Locandro notes that the second sale may also be financially beneficial for the physician stakeholders as well.
Disclaimer: The Materials available on BackTable.com are for informational and educational purposes only and are not a substitute for the professional judgment of a healthcare professional in diagnosing and treating patients. The opinions expressed by participants of the BackTable Podcast belong solely to the participants, and do not necessarily reflect the views of BackTable.