Private Equity Has Emerged as a Major Player in Urgent Care—But Not Everyone Is Celebrating

Private equity (PE) investors started taking an interest in urgent care several years ago, and have continued to pony up considerable capital that is pushing industry expansion to new heights. The “yin” to that “yang” is that some healthcare providers are pushing back on what they seem to see as overinvolvement by PE in institutional operations and decision-making. An article featured on LinkedIn recently noted that the American College of Emergency Physicians has taken a strongly oppositional stance on nonphysician ownership of medical practices on the grounds that it “threatens physician autonomy.” Physicians and healthcare stakeholders commenting on the article suggested that cost increases passed along to insurers and patients could ultimately reduce access to healthcare for some. Not all comments were negative regarding PE ownership, however. One physician acknowledged that “it is challenging for physicians—most especially primary care—to run their own practices. It is difficult to have any negotiating power with insurance companies, among many other challenges of being an independent practice.” For a distinctly urgent care perspective on the role of PE in our industry, read Why Private Equity and Other ‘Smart Money’ Is Bullish on Brick-and-Mortar Urgent Care and Urgent Care Growth Is Poised to Continue in 2023 in the JUCM archives.