Recently, “Get the Money”, the email of a dermatologist, came into the news. Among the most expensive health financers, private equity firms bag the first place. This type of company is opened with lots of debt; then, the owner resells the company a few years later for more than its cost price to make a profit.
Private Equity Firm A Threat In The Medical World!
Some outside investors owe the debt to financers in the hope of getting a high profit. Private equity firms have an impact on the healthcare industry, research, economists, and so on. According to a private equity data source, Perqin, these organizations were able to raise a good sum of $350 billion in the last ten years. The aim of this type of organization is to raise funds for healthcare operations. Only last year were they able to raise a sum of $50 billion from investors.
The most important branch of private equity firms is dermatology. They earn most of their profit through this. There were more than 30 private equity dermatology groups before the pandemic. According to the research, more than 15% of Private equity owns a larger share of dermatology, and the percentage has risen over the last few years.
Private equity firms claim that they create jobs, support businesses, and help pensioners who invest in the strategy live comfortably in retirement. However, many people outside the industry are particularly critical of the industry’s involvement in health.
According to researchers, the aim of private equity is to earn a profit by prioritizing quality of care. They manipulate their clients and are also engaged in a false billing system.
Most dermatologists are owned by private equity. They provide facilities for dermatologists to do experiments and research. For that, they need funds too. They charge extra money from their customers in the form of incentives and additional testing charges.
Dr. Jose Rios, the chief medical officer, said in one of her interviews that their top priority is to serve their patients, unlike private equity firms that treat patients just to earn more and more profit. Their main task is patients’ health and safety. They are loyal towards their patients, and they have a clean record of their work. They aim to provide good results in the future too.
According to a private equity firm that was founded in 2014, investors only invest in projects that they think will give a profit and will provide more innovative ideas in the fields of health care and dermatology.
Brown, a formal physician, shared her experience of working with private equity firms. When her physician died, the private equity firm owned her clinic, and the changes were visible to the eyes.
The quality of treatment was reduced, the strength of biopsy patients increased, and they did not invest in bringing new technologies into the clinic. The patient who can be treated in one go was called many times just to make money. Brown handed a letter to her lawyer against private equity firms, and soon after the letter was released in the media, Brown was fired from her job.
The company gave an excuse for the dismissal of Brown as an ill-mannered doctor. They also targeted her for sending chain emails. Brown faced lots of criticism because of that. There are five other dermatologists who shared their experience after working for a private equity firm.
It takes lots of courage to speak openly as Brown did. Before working with private equity firms, the practitioners were required to sign a non-disclosure agreement, and because of that, they were not allowed to reveal any information about their workplace. But according to Brown, she had never signed any such agreements. According to Brown, patients deserve to be treated by the best dermatologists.
With over 15 years as a practicing journalist, Nikki Attkisson found herself at Powdersville Post now after working at several other publications. She is an award-winning journalist with an entrepreneurial spirit and worked as a journalist covering technology, innovation, environmental issues, politics, health etc. Nikki Attkisson has also worked on product development, content strategy, and editorial management for numerous media companies. She began her career at local news stations and worked as a reporter in national newspapers.