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Shining a light on PE ownership.

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TE

TeamHealth

healthcare staffing and clinical outsourcing
PE-OWNED

Major physician staffing company serving hospitals and healthcare facilities.

PE-OWNED

Acquired by Blackstone2016-12-01

View PE Firm Profile

What Made It Great

“

Reliable emergency and hospital medicine staffing with experienced physicians.

What PE Will Likely Do

Predictions

Reduction in the number of experienced physicians staffing hospitals and healthcare facilities, replaced with less qualified staff

HIGH LIKELIHOODBased on: Blackstone's history of cost-cutting and debt-loading tactics in other industries, which often lead to a decline in service quality

Aggressive billing practices to maximize revenue, including upcoding for higher-reimbursement procedures and diagnoses

HIGH LIKELIHOODBased on: The industry playbook for private equity firms in the healthcare sector, which includes staffing reductions, real estate sale-leasebacks, billing upcoding, and service line cuts

Closure or scaling back of less profitable but essential healthcare services like psychiatric care, maternity services, and rural healthcare

HIGH LIKELIHOODBased on: The specific details about TeamHealth's business model and the essential nature of the services it provides

Deterioration in the quality of care provided to patients, including longer wait times, shorter appointment durations, and deferred equipment maintenance

HIGH LIKELIHOODBased on: The specific details about TeamHealth's business model and the essential nature of the services it provides

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Cosmetic changes and 'optimization' announcements, with a leadership shuffle

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing cuts begin under the guise of 'efficiency' programs, and service reviews are initiated

12-24 months

“12 to 24 months months”

Noticeable decline in service quality, with longer wait times and increased patient dissatisfaction

24-36 months

“24 to 36 months months”

Major issues emerge, such as department closures and quality scandals

36+ months

“36+ months months”

Potential bankruptcy, hospital closures, or fire sale to another operator

What You Can Do

Take Action

Actions

  • Be vigilant for any changes in the quality of care provided by TeamHealth-staffed facilities, such as longer wait times, shorter appointments, or the discontinuation of essential services

  • Research alternative healthcare providers in your area that are not owned by private equity firms

  • Advocate for greater transparency and accountability in the healthcare industry, particularly around the impact of private equity ownership

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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