Altus Emergency Centers
A freestanding emergency room operator providing 24/7 emergency care in Texas.
PE-OWNED
Acquired by Sentinel Capital Partners2016-09-01
What Made It Great
Convenient freestanding emergency rooms in suburban locations
What PE Will Likely Do
Staffing at Altus Emergency Centers will be reduced, with more lower-skilled medical assistants and fewer experienced registered nurses (RNs) on staff
Altus will sell the real estate of its freestanding emergency room locations and begin leasing them back, extracting equity for investors
Altus will aggressively upcode medical procedures and diagnoses to increase reimbursements from insurance providers
Altus may choose to eliminate unprofitable but essential services like pediatric emergency care or behavioral health support
Expected Timeline
“0 to 6 months months”
Altus will announce 'optimization' initiatives and likely undergo a management shuffle, with Sentinel's executives taking on key roles
“6 to 12 months months”
Staffing reductions will begin, with RNs being replaced by lower-cost medical assistants. Altus will also start reviewing its service lines for potential cuts
“12 to 24 months months”
Patients will start to notice longer wait times, as well as a decline in the quality of care. Altus may begin closing down certain service lines or departments
“24 to 36 months months”
Major issues will emerge, such as service closures, quality scandals, and potentially even the closure of some Altus emergency room locations
“36+ months months”
Altus may face bankruptcy or be sold off to another operator, potentially resulting in the permanent closure of some of its emergency room facilities
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Patients should be vigilant for any signs of declining care quality at their local Altus Emergency Center, such as longer wait times, less experienced staff, or the elimination of essential services
Consumers should reach out to their local elected officials and healthcare regulators to advocate for maintaining high-quality emergency care in their communities
Patients with ongoing medical conditions or who require specialized emergency services should consider identifying alternative care providers in their area as a precaution
Alternatives
Community-focused healthcare
Integrated managed care consortium