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EY

EyeCare Partners

healthcare
PE-OWNED

Ophthalmology and optometry practice management company.

PE-OWNED

Acquired by KKR2017-05-22

View PE Firm Profile

What Made It Great

Consolidation platform for eye care practices with surgical capabilities

What PE Will Likely Do

Reduced staffing levels, with fewer highly-trained optometrists and ophthalmologists and more reliance on lower-cost technicians and assistants

HIGH LIKELIHOODBased on: KKR's track record of aggressive cost-cutting and debt-loading strategies in acquired companies

Increased use of upcoding and aggressive billing practices to maximize reimbursements, potentially leading to higher out-of-pocket costs for patients

HIGH LIKELIHOODBased on: The healthcare industry playbook of common PE tactics that negatively impact patient care quality

Closure or scaling back of less profitable but essential services like vision therapy, low vision care, and pediatric ophthalmology

HIGH LIKELIHOODBased on: The precedent of similar PE-backed healthcare acquisitions leading to bankruptcy or fire sales

Reduced investment in new technologies, equipment, and facilities, leading to longer wait times and delayed access to the latest advancements in eye care

HIGH LIKELIHOODBased on: The precedent of similar PE-backed healthcare acquisitions leading to bankruptcy or fire sales

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Announcement of 'optimization' plans, potential leadership changes

6-12 monthsYOU ARE HERE

6 to 12 months months

Staffing reductions begin, with more technicians and fewer specialists

12-24 months

12 to 24 months months

Noticeable decline in appointment availability and patient wait times, with some service lines being reduced or eliminated

24-36 months

24 to 36 months months

Widespread patient complaints about quality of care, potential regulatory issues or lawsuits related to billing practices

36+ months

36+ months months

Potential for facility closures, sale to another operator, or bankruptcy

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Be vigilant for any changes in your eye care provider's staffing, appointment availability, or service offerings

  • Carefully review your medical bills and advocate for fair and transparent pricing

  • Consider seeking care from independent, community-based eye care providers that are not owned by large PE-backed corporations

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

Share this company's PE status

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