TeamHealth
Major physician staffing company serving hospitals and healthcare facilities.
PE-OWNED
Acquired by Blackstone2016-12-01
What Made It Great
Reliable emergency and hospital medicine staffing with experienced physicians.
What PE Will Likely Do
Reduction in the number of experienced physicians staffing hospitals and healthcare facilities, replaced with less qualified staff
Aggressive billing practices to maximize revenue, including upcoding for higher-reimbursement procedures and diagnoses
Closure or scaling back of less profitable but essential healthcare services like psychiatric care, maternity services, and rural healthcare
Deterioration in the quality of care provided to patients, including longer wait times, shorter appointment durations, and deferred equipment maintenance
Expected Timeline
“0 to 6 months months”
Cosmetic changes and 'optimization' announcements, with a leadership shuffle
“6 to 12 months months”
Staffing cuts begin under the guise of 'efficiency' programs, and service reviews are initiated
“12 to 24 months months”
Noticeable decline in service quality, with longer wait times and increased patient dissatisfaction
“24 to 36 months months”
Major issues emerge, such as department closures and quality scandals
“36+ months months”
Potential bankruptcy, hospital closures, or fire sale to another operator
What You Can Do
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
Look for family-owned or employee-owned businesses