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EM

Emergency Medicine Physicians

healthcare
PE-OWNED

An emergency medicine group providing physician staffing services to hospital emergency departments.

PE-OWNED

Acquired by Sun Capital Partners2017-12-01

View PE Firm Profile

What Made It Great

Emergency physician staffing with focus on rural and community hospitals

What PE Will Likely Do

Emergency physician staffing will be reduced, with more RNs replaced by LPNs and aides to cut labor costs

HIGH LIKELIHOODBased on: Sun Capital Partners' track record of high bankruptcy rates and cost-cutting tactics in acquired companies

The company will likely sell the real estate of the hospitals it staffs and lease it back, extracting equity for investors

HIGH LIKELIHOODBased on: The healthcare industry playbook, which shows a high frequency of staffing reductions, real estate sale-leasebacks, billing upcoding, and service line cuts in PE-owned healthcare companies

Aggressive billing practices will emerge, with more procedures and diagnoses coded at higher reimbursement levels

HIGH LIKELIHOODBased on: The detailed timeline of how these tactics typically play out in the healthcare industry, leading to a decline in service quality and potential bankruptcy

Certain essential but unprofitable services like rural emergency care or psychiatric emergency care will be cut or reduced

HIGH LIKELIHOODBased on: The detailed timeline of how these tactics typically play out in the healthcare industry, leading to a decline in service quality and potential bankruptcy

Patients will experience longer wait times, shorter appointment times, and a noticeable decline in the quality of emergency care

HIGH LIKELIHOODBased on: The detailed timeline of how these tactics typically play out in the healthcare industry, leading to a decline in service quality and potential bankruptcy

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Cosmetic changes, 'optimization' announcements, and leadership shuffles

6-12 monthsYOU ARE HERE

6 to 12 months months

Staffing cuts begin under the guise of 'efficiency' programs, and service reviews are conducted

12-24 months

12 to 24 months months

Service quality noticeably declines, with longer wait times and reduced availability of specialized emergency services

24-36 months

24 to 36 months months

Major issues emerge, such as the closure of emergency departments in rural and community hospitals

36+ months

36+ months months

Potential bankruptcy, widespread hospital closures, or a fire sale to another operator

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Be aware of potential changes in the quality of emergency medical care, such as longer wait times, shorter appointments, and reduced availability of specialized services

  • If you or a loved one requires emergency care, consider alternative providers or hospitals that may not be affected by these changes

  • Stay informed about any public reports or news regarding the performance and quality of Emergency Medicine Physicians and the hospitals it staffs

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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