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Surgery Partners

healthcare
PE-OWNED

Ambulatory surgery center operator providing same-day surgical procedures across multiple specialties.

PE-OWNED

Acquired by Bain Capital2017-05-01

View PE Firm Profile

What Made It Great

Cost-effective outpatient surgery platform with strong physician partnerships

What PE Will Likely Do

Staffing cuts leading to fewer experienced registered nurses (RNs) and more licensed practical nurses (LPNs) or nursing aides providing care

MODERATEBased on: Bain Capital's track record of aggressive cost-cutting and revenue optimization tactics in acquired healthcare companies

Aggressive upcoding of patient procedures and diagnoses to maximize reimbursements, potentially leading to unnecessary treatments

MODERATEBased on: High frequency of common PE playbook moves observed in the healthcare industry, including staffing reductions, real estate monetization, billing upcoding, and service line cuts

Closure or scaling back of less profitable but essential service lines like pediatrics, geriatrics, or rural care access

MODERATEBased on: Precedents of PE-owned healthcare companies experiencing quality declines, financial distress, and eventual bankruptcies or fire sales

Shorter patient appointments and higher patient loads per clinician as 'efficiency' measures are implemented

MODERATEBased on: Precedents of PE-owned healthcare companies experiencing quality declines, financial distress, and eventual bankruptcies or fire sales

Deferral of equipment upgrades and facility maintenance, leading to aging infrastructure and outdated medical technology

MODERATEBased on: Precedents of PE-owned healthcare companies experiencing quality declines, financial distress, and eventual bankruptcies or fire sales

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Announcement of 'optimization' plans, initial leadership changes

6-12 monthsYOU ARE HERE

6 to 12 months months

Staffing cuts begin, service line reviews commence

12-24 months

12 to 24 months months

Noticeable decline in patient experience and care quality metrics

24-36 months

24 to 36 months months

Potential service closures, quality scandals, or financial distress

36+ months

36+ months months

Possibility of bankruptcy, hospital closures, or acquisition by another operator

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Closely monitor patient experience and quality of care metrics at Surgery Partners facilities

  • Be wary of any unexpected changes to service offerings, provider staffing, or medical equipment/technology

  • Consider alternative ambulatory surgery center options if quality declines become unacceptable

  • Advocate for regulatory oversight and transparency measures to protect patient interests in PE-owned healthcare companies

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

Share this company's PE status

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