Sunday morning bathroom read (Bill Burr edition)………………….
By Doug Aldeen, Attorney at Law (A continuing series of Sunday morning pontifications)
Sample SAT multiple choice question: At a recent P/E conference regarding market share of GI doctors, an analyst was overheard saying:
A) The lobster bisque is tepid;
B) We are entering the golden age of older rectums;
C) Burberry is pedantic;
D) “Buga suga” is on the house;
E) All of the above.
“…With market dominance comes the business opportunity to set and maintain high prices. “It’s pretty much the only game in town,” Mariel said.
Private equity, known for making a profit on quick-turnaround investments in struggling businesses across many industries, has taken an increasingly active interest in healthcare in the past decade. It has invested in gastroenterology practices in recent years to tap into the revenue potential in meeting growing demand.
Preventive colonoscopies are covered without patient cost sharing under the Affordable Care Act, but colonoscopies for patients with existing conditions, like Mariel, are not. A 2019 study found patients with inflammatory bowel diseases, including Crohn’s disease, incur about $23,000 in healthcare costs a year. Medication treatments alone can cost tens of thousands of dollars annually.”
Betting on ‘Golden Age’ of colonoscopies, private equity invests in gastro docs | Modern Healthcare
