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Shining a light on PE ownership.

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QU

Questcare Partners

healthcare
PE-OWNED

Operates urgent care centers and occupational medicine clinics.

PE-OWNED

Acquired by Golden Gate Capital2016-11-08

View PE Firm Profile

What Made It Great

“

Convenient urgent care with strong employer health services

What PE Will Likely Do

Predictions

Significant reduction in nursing staff, replaced by less-trained and lower-paid medical assistants or LPNs

HIGH LIKELIHOODBased on: Golden Gate Capital's history of aggressive cost-cutting and profit-maximization tactics in acquired companies

Aggressive 'upcoding' of patient visits and procedures to maximize insurance reimbursements, leading to higher costs for patients

HIGH LIKELIHOODBased on: The healthcare industry playbook of PE firms, which prioritizes short-term returns over long-term quality of care

Closure or scaling back of less-profitable service lines like psychiatric care, occupational health, or rural clinics

HIGH LIKELIHOODBased on: The high bankruptcy rate of companies acquired by Golden Gate Capital

Extraction of large management fees by Golden Gate Capital, reducing funds available for facility maintenance and upgrades

HIGH LIKELIHOODBased on: The high bankruptcy rate of companies acquired by Golden Gate Capital

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcement of 'optimization' program, with new management brought in to drive cost-cutting

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Nursing staff reductions begin, service line reviews underway

12-24 months

“12 to 24 months months”

Patients notice longer wait times, less time with providers, and reduced access to certain services

24-36 months

“24 to 36 months months”

Potential closure of lower-volume clinics, quality-of-care scandals emerge

36+ months

“36+ months months”

Possibility of Questcare Partners filing for bankruptcy or being sold off 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

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US Dermatology Partners

Ares Management·2016

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Hahnemann University Hospital

Cerberus Capital Management·2018

See full case study
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Sound Physicians

Summit Partners·2019

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What You Can Do

Take Action

Actions

  • Be aware of potential reductions in the quality of care at Questcare Partners clinics, and advocate for maintaining high standards of nursing staff and essential services

  • Monitor patient reviews and industry reports for signs of declining quality, and be prepared to seek care elsewhere if necessary

  • Contact local lawmakers and regulators to raise concerns about the impact of private equity ownership on healthcare accessibility and quality

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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