From Health Affairs Today <[email protected]>
Subject Understanding Private Equity Involvement In Health Care
Date May 10, 2021 8:11 PM
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The Latest Research, Commentary, And News From Health Affairs

Monday, May 10, 2021

Dear John,

The May 2021 issue of Health Affairs features multiple articles on
organization of care. Today we highlight two about private equity
acquisitions of hospitals and physician practices.

Understanding Private Equity Involvement In Health Care

Two May papers discuss private equity firms' practices in health care.

In the first, Anaeze Offodile II and coauthors provide an overview of
private equity acquisitions of acute care hospitals
.
They found that acquisitions occur predominantly in the Mid-Atlantic and
Southern US and are more likely to be for-profit hospitals in urban
areas. They also found that on average private equity-acquired
hospitals had higher operating margins than non-acquired hospitals.

Offodile discussed this research on a recent episode of A Health
Podyssey
.

Dermatology has been the most commonly targeted specialty for private
equity firms investing in physician practices. Robert Tyler Braun and
colleagues estimated the prevalence of acquisitions and their impact on
dermatology prices, spending, utilization, and volume of patients
.
They determined that private equity acquisition leads to dermatologists
seeing up to 17 percent more patients after two years and charging more
for routine visits.

Today on Health Affairs Blog: As we look toward the eventual end of the
COVID-19 crisis in the US, much discussion is focused on the future of
telehealth-what it will look like, who will be able to access it, and
how it will be paid for once the public health emergency ends.

Today on Health Affairs Blog we feature a special collection of new
pieces identifying key considerations for charting telehealth's
course.

* In light of intensifying tension over appropriate uses and payment for
telehealth, Francis Crosson proposes that now is the time to examine
innovative payment and information-sharing models
.

* Chad Ellimoottil draws on emerging evidence to counter arguments
against continuing payment parity for telehealth

after the pandemic ends.

* Kyle Thomson draws attention to an under-the-radar statutory provision
in the Social Security Act that will result in most Medicare
beneficiaries losing access to telehealth

at the end of the current public health emergency-unless Congress
acts.

* Joseph Liss, David Peloquin, and Barbara Bierer call for a new
licensure system, based on nursing's successful model, that would
enable physicians to practice across state borders
-enabling
the replacement of in-person visits with telehealth.

* Building on a previous blog post
,
Amol Navathe and Joshua Liao encourage policy makers to view telehealth
as an opportunity to fundamentally rethink care delivery under
alternative payment models
.

Elevating Voices: Asian American and Pacific Islander American Heritage
Month: Kevin Nguyen and colleagues published a paper in 2018 that found
that although disparities in access to care between straight adults and
lesbian, gay, and bisexual (LGB) adults

have narrowed in the post-Affordable Care Act era, LGB adults still
reported having significantly more bad mental health days relative to
their straight peers.

Your Daily Digest

Private Equity Investments In Health Care: An Overview Of Hospital And
Health System Leveraged Buyouts, 2003-17

Anaeze C. Offodile II, Marcelo Cerullo, Mohini Bindal, Jose Alejandro
Rauh-Hain, and Vivian Ho

Podcast: Understanding Private Equity Investment In Hospitals

Alan Weil and Anaeze C. Offodile II

Private Equity In Dermatology: Effect On Price, Utilization, And
Spending

Robert Tyler Braun, Amelia M. Bond, Yuting Qian, Manyao Zhang, and
Lawrence P. Casalino

The Coming Conflict Over Tele-Visits: The Need For Innovation In Payment
And Information Sharing

Francis J. Crosson

Understanding The Case For Telehealth Payment Parity

Chad Ellimoottil

Congress: Act Now To Ensure Telehealth Access For Medicare Beneficiaries

Kyle Thomson

Mutual Recognition Of Physician Licensure By States Would Provide For
Better Patient Care

Joseph M. Liss, David Peloquin, and Barbara E. Bierer

After COVID-19, A Payment Policy Reboot: Three Lessons From The Pandemic
On How To Improve Value-Based Payment

Amol S. Navathe and Joshua M. Liao

How Telehealth Can Enable New Care Management Strategies In Alternative
Payment Models

Amol S. Navathe and Joshua M. Liao

Lesbian, Gay, And Bisexual Adults Report Continued Problems Affording
Care Despite Coverage Gains

Kevin H. Nguyen, Amal N. Trivedi, and Theresa I. Shireman

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