Retina Consultants of America
Retinal specialty practice management company.
PE-OWNED
Acquired by Ares Management2016-11-08
What Made It Great
Specialized retinal care with advanced surgical capabilities
What PE Will Likely Do
Retina Consultants of America will likely experience a reduction in the number of experienced retinal specialists, as Ares Management cuts staffing to reduce labor costs. This could result in longer wait times for patients and a decline in the quality of specialized retinal care provided.
Ares Management will likely attempt to extract equity from Retina Consultants of America's real estate assets through a sale-leaseback arrangement. This could lead to higher overhead costs for the practice, which may be passed on to patients in the form of increased fees for services.
Ares Management may pressure Retina Consultants of America to aggressively code for higher-reimbursement procedures and diagnoses, leading to potential billing upcoding and a decline in the accuracy of patient records and treatment plans.
Expected Timeline
“0 to 6 months months”
Announcements of 'optimization' initiatives and a potential leadership shuffle, as Ares Management takes control of the company.
“6 to 12 months months”
Staffing cuts begin, with experienced retinal specialists replaced by less-qualified personnel to reduce labor costs. Service reviews and 'efficiency' programs are implemented.
“12 to 24 months months”
Patients begin to notice a decline in the quality of care, with longer wait times, shorter appointments, and a perceived drop in the level of specialized attention they receive.
“24 to 36 months months”
Major issues emerge, such as the closure of certain specialized retinal care services or the departure of key retinal specialists due to dissatisfaction with the changes.
“36+ months months”
Potential bankruptcy, the sale of Retina Consultants of America to another operator, or the complete shuttering of the practice, leaving patients with limited access to high-quality retinal care.
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Patients of Retina Consultants of America should closely monitor any changes in the quality of care, including wait times, the level of attention from specialists, and the availability of advanced retinal procedures.
Patients should be vigilant about their medical bills and seek clarity on any changes to the coding or pricing of services, as Ares Management may push for aggressive billing upcoding.
Patients should consider seeking alternative providers for their specialized retinal care if the quality of services at Retina Consultants of America declines significantly.
Alternatives
Community-focused healthcare
Integrated managed care consortium