Snapshot
- Urology attracts private equity due to multiple revenue streams.
- Many urologists feel dissatisfied with private equity buyouts.
- Emphasis should be on building independent, micro practices.
- Utilizing remote staff and telemedicine can enable better patient care.
Overview
Urology is ripe for consolidation, primarily because many urologists are too engaged in patient care to focus on operational aspects. As a result, the urology field, being a surgical specialty with several revenue streams, has been attracting private equity investment for several years. However, this can lead to dissatisfaction among urologists, especially those nearing the end of their careers who may feel compelled to accept buyout offers.
Instead of succumbing to the trend, the emphasis should be on building independent, micro practices supported by a strong team and a culture of physician leadership. Creative solutions like leveraging remote staff, extensive use of telemedicine, and training apps can enable surgeons to operate at the top of their license, focusing more on hands-on procedures.
Contrary to the industry’s push towards consolidation, the opportunity may lie in the opposite direction. Many urologists who have been part of these acquisitions express dissatisfaction with their private equity backers. The ultimate goal should be patient care, not profit-driven healthcare.
Reaction(s)
Dr. Pazona has got the right perspectives and line of sight towards maintaining an independent and entrepreneurial urologic practice. I know him personally and he’s got the “right stuff”! If you’re seeking personalized and a more conceriege type of care he’s your guy. However, I may have a slightly more variance on the theme on why the urology sector continues to be ripe for consolidation. Having developed the original business plan in 2010 and subsequently in 2013 I was way too early to execute. Mainly for one good reason urology practices were printing money as a result of their pronounced presence in the universe of ancillary services. Fast forward 2016-2019 and all of sudden there were no less than 5-6 PE sponsored platforms including U.S. Urology Partners the group that I led for several years before rolling off the executive team. Urology is still very much in the yearly stages like other specialists of consolidation. What this consolidation will look like in 2030 is not clear today but I can envision urology as a long pole in the tent that includes multi speciality, single speciality, dual speciality (GI and or oncology) and then we have the payers like Humana and UHC and the retail sector. The beauty and my partiality to urology since the mid 70’s is the advancements in technology for both dx and therapy is pretty mind blowing. In 1978 I witnessed my first TURP and cystoscope and that was pretty much how you treated BPH. Over the ensuing 40+ years you can count on both hands and then another the proliferation of therapeutic options. Fast forward 2020 and we installed a robotic system in an ASC to treat prostate cancer better, faster and way cheaper than a hospital. Do I need to say anymore? Maybe my next blog on Slice will be a video blog. Enjoy and get on board as urology’s better days are tomorrow! Ciao.
Mark Cherney
Founder & FMR CEO
U.S. Urology Partners
