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EM

Emergency Physician Partners

healthcare
PE-OWNED

Emergency medicine physician group serving hospitals nationwide.

PE-OWNED

Acquired by H.I.G. Capital2020-02-01

View PE Firm Profile

What Made It Great

“

Staffing emergency departments with board-certified emergency physicians.

What PE Will Likely Do

Predictions

Emergency Physician Partners will reduce the number of board-certified emergency physicians staffing hospital emergency departments, replacing them with less qualified and cheaper physician assistants or nurse practitioners

HIGH LIKELIHOODBased on: H.I.G. Capital's track record of cost-cutting and service quality reduction in past healthcare acquisitions

Emergency Physician Partners will reduce the number of nursing staff in emergency departments, replacing registered nurses (RNs) with licensed practical nurses (LPNs) or nursing assistants to cut labor costs

HIGH LIKELIHOODBased on: The healthcare industry playbook for private equity firms, which frequently involves staffing reductions, billing upcoding, and service line cuts

Emergency Physician Partners will aggressively 'upcode' billing for emergency department visits, leading to higher out-of-pocket costs for patients

HIGH LIKELIHOODBased on: The timeline of changes observed in similar past cases of private equity takeovers of healthcare providers

Emergency Physician Partners will eliminate or reduce the availability of certain essential emergency services, such as psychiatric or pediatric care, in some hospital locations to improve profitability

HIGH LIKELIHOODBased on: The timeline of changes observed in similar past cases of private equity takeovers of healthcare providers

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Emergency Physician Partners will announce leadership changes and 'efficiency initiatives' aimed at 'optimizing' operations

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing reductions will begin in emergency departments, with fewer board-certified physicians and fewer RNs

12-24 months

“12 to 24 months months”

Patients will experience longer wait times, reduced time with providers, and a noticeable decline in the quality of emergency care

24-36 months

“24 to 36 months months”

Certain emergency department closures or service eliminations may occur at some hospital locations, leading to care access issues for local communities

36+ months

“36+ months months”

Potential financial distress or even bankruptcy of Emergency Physician Partners, leading to further disruptions or a fire sale to another operator

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Steward Health Care

Cerberus Capital Management·2010

See full case study
Operating

Envision Healthcare

KKR·2018

See full case study
Operating

US Dermatology Partners

Ares Management·2016

See full case study
Operating

Hahnemann University Hospital

Cerberus Capital Management·2018

See full case study
Operating

Sound Physicians

Summit Partners·2019

See full case study

What You Can Do

Take Action

Actions

  • Patients should be aware of changes in the staffing and care quality at their local emergency departments, and advocate for maintaining the presence of board-certified emergency physicians

  • Patients should closely review their emergency department bills and question any unexpectedly high charges or unfamiliar billing codes

  • Patients should stay informed about any service reductions or closures at their local emergency departments and be prepared to seek care at alternative facilities if necessary

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"Emergency Physician Partners is now PE-owned. Here's what that means for you."