Plastic surgery private equity has become a hot topic in recent years, offering practice owners new opportunities for financial growth, business expansion and long-term security. While this model can be highly beneficial, it is important to weigh both the advantages and potential challenges before deciding if it could be right for you and your practice.
Pros of Plastic Surgery Private Equity
There are a number of key benefits that plastic surgery practice owners can obtain when partnering with a private-equity-backed group like Olympus Cosmetic Group.
1. Relief from Administrative Burdens
Most plastic surgeons don’t go into medicine to manage HR, payroll or vendor negotiations. Private equity groups take on these operational responsibilities, allowing surgeons to focus on patient care rather than administrative tasks.
2. Increased Profitability Through Group Purchasing Power
By joining a network of other top plastic surgery practices, you also get the benefit of group purchasing power, allowing you to purchase medical equipment and other supplies at a discount. This is a simple, yet effective way to increase the profitability of your practice without requiring higher patient volume.
3. Collaboration with Other Top Plastic Surgeons
Group purchasing power isn’t the only benefit of joining a network of some of the most elite plastic surgeons across the country. This also gives you the opportunity to collaborate and knowledge-share with high-caliber peers, helping the group as a whole to streamline best practices and even gain access to some of the most cutting-edge technology and techniques.
4. Realistic Exit Strategies and Financial Security
Many plastic surgeons find private equity appealing as a way to gradually transition into retirement while still maintaining an active role in the practice and financially benefiting.
Cons of Plastic Surgery Private Equity
While plastic surgery private equity comes along with many benefits, there are also a few drawbacks to be aware of before deciding if it could be right for your practice.
1. Transition Period for Staff and Surgeons
Integrating your practice into a private-equity-backed network will require a transition period, which can take some time and effort. While the goal is to make this transition as smooth as possible, expect to experience some operational adjustments along the way.
2. Reduced Autonomy in Decision-Making
While most private equity groups aim to keep the medical aspects of the practice completely in the hands of surgeons, business-related decisions will be shared with practice owners and the investment group. For many plastic surgeons, however, this comes as a bit of a relief, as networks like Olympus Cosmetic Group have unique experience to make the best business decisions for the financial health of the practice and all stakeholders involved.
3. Pressure to Meet Financial Targets
The goal of partnering with a private equity group is ultimately to increase the profitability of your practice. Investment firms also need to see a return on the investment in order for the partnership to be mutually beneficial. Thus, this often translates to setting specific financial targets, which may put some added pressure on practice owners to meet those goals.If you are interested in learning more about our invite-only network of elite plastic surgery practices, we invite you to get in touch.
