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How to Successfully Manage Private Equity Buyouts: An Essential Guide for Plastic Surgeons at All Career Stages
Jarred Bratley, George Durisek, Steven Schneeberger, Aleksandra Krajewski, Ibrahim Amjad, Rajiv Chandawarkar
Department of Plastic Surgery, The Ohio State University
2025-01-10
Presenter: Jarred Bratley
Affidavit:
100
Director Name: Gregory Pearson
Author Category: Resident Plastic Surgery
Presentation Category: Clinical
Abstract Category: General Reconstruction
Background: Private equity (PE) firms have increasingly targeted plastic and reconstructive surgery, following the broader investment trend in healthcare. Incentivized by cash-based transactions and financial potential, the firms aim to consolidate practices, scale operations, and maximize profitability. The acquisitions reciprocally involve substantial payouts to practice owners. However, the transition to PE management can raise concerns about prioritizing business objectives over high-quality patient care. Few publications focus on practical solutions for successfully managing the PE transition. This work aims to outline practical steps that both PE firms and plastic surgeons can take to encourage collaboration.
Methods: A comprehensive review of the medical and business management literature was performed to develop customized strategies to make the plastic surgeon experience with PE more professionally rewarding at various career stages.
Results: This research outlines unique strategies for PE leaders, senior physicians, mid-career physicians, and junior physicians. The literature review found that PE acquisitions commonly lead to five core concerns: uncertainty, salary reductions/job losses, increased workloads, decreased clinical autonomy, and unclear career prospects. Proactively addressing these main concerns can strengthen patient care, career satisfaction, and return to investors.
Conclusions: Drawing insights from both clinical and business management, this research models the successful incorporation of PE into plastic surgery practices. A collaborative partnership can benefit all stakeholders - patients, physicians, and investors.
