Physiatry Associates
Rehabilitation medicine practice providing physical medicine and rehabilitation services.
PE-OWNED
Acquired by Sentinel Capital Partners2019-03-14
What Made It Great
Specialized rehabilitation medicine with integrated therapy services
What PE Will Likely Do
Physiatry Associates will likely experience staffing reductions, with a shift towards less qualified medical personnel like physical therapy assistants instead of physical therapists
The company may sell its real estate assets and lease them back, extracting equity for investors while increasing costs for the practice
Physiatry Associates may engage in aggressive billing practices, 'upcoding' to higher-reimbursement procedures and diagnoses to boost revenue
The company may eliminate or reduce investment in certain specialized rehabilitation services, like speech therapy or occupational therapy, in order to cut costs
Expected Timeline
“0 to 6 months months”
Announcements of 'optimization' efforts and a leadership shuffle, with little immediate impact on patients
“6 to 12 months months”
Staffing cuts begin, with physical therapists and other specialized clinicians replaced by less experienced personnel. Patients may experience longer wait times and more limited service options
“12 to 24 months months”
Quality of care noticeably declines, with patients reporting shorter appointment times, reduced time with clinicians, and delays in accessing certain rehabilitation services
“24 to 36 months months”
Significant issues emerge, such as the closure of specialized treatment programs or entire clinic locations, leading to major disruptions in patient care
“36+ months months”
Potential bankruptcy or sale of Physiatry Associates, resulting in further upheaval and uncertainty for patients
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Closely monitor any changes in the availability, quality, and cost of rehabilitation services at Physiatry Associates
Be vigilant for signs of reduced staffing, longer wait times, and changes in the types of clinicians providing care
If the quality of care declines significantly, consider seeking alternative providers that can meet your specialized rehabilitation needs
Alternatives
Community-focused healthcare
Integrated managed care consortium