American Renal Associates
Dialysis services provider operating outpatient kidney dialysis centers.
PE-OWNED
Acquired by Golden Gate Capital2017-11-28
What Made It Great
Community-based dialysis centers with physician-centric care model
What PE Will Likely Do
Reduction in nursing staff, with more LPNs and aides replacing RNs at dialysis centers
Aggressive coding for higher-reimbursement procedures and diagnoses to boost revenue
Elimination of unprofitable but essential services like psychiatric care or home dialysis
Extraction of large management and consulting fees, reducing resources for patient care
Expected Timeline
“0 to 6 months months”
Announcements of 'optimizing' operations and a leadership shuffle
“6 to 12 months months”
Staffing cuts begin, with fewer RNs per patient and longer wait times
“12 to 24 months months”
Noticeable decline in service quality, with rushed appointments and reduced access to specialized care
“24 to 36 months months”
Potential closure of less profitable dialysis centers, leading to reduced access for patients
“36+ months months”
Possibility of bankruptcy or a fire sale to another operator, further disrupting patient care
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Closely monitor wait times, staff-to-patient ratios, and access to specialized care at your local dialysis center
Be aware of any changes in billing practices or a sudden increase in higher-reimbursement procedures
Advocate for the preservation of essential services like home dialysis and psychiatric care
Stay informed about any potential center closures or disruptions to your care, and be prepared to switch providers if necessary
Alternatives
Community-focused healthcare
Integrated managed care consortium