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Shining a light on PE ownership.

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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

Predictions

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

Phases
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

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

  • 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

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