ER Doc Advisor - Financial Planning & Taxes for Emergency Physicians

EP 125: Private Equity in EM: Less Shifts, Pay, and Jobs

Are you aware of private equity’s involvement in emergency medicine? You may or may not have directly experienced their involvement, but if any of the following sound familiar, it very well could be the result of PE ownership: lack of flexibility internally to work more shifts; difficulty picking more desirable shifts; and/or less higher paying opportunities available.

The reason for this is similar to inflation. Take a company like Doritos. The way they combat inflation is by not only increasing prices, but by also decreasing the amount of chips per bag by 5%. Although it may seem inconsequential as a consumer, it adds up for the producer. The same thing exists for emergency medicine – things are getting smoothed out, but it can be difficult to notice. We’ll discuss that on today’s episode.

Topics Discussed:     
  • Ways PE firms are making changes.
  • Common ways to cut costs in the ER.
  • Things that go downhill when cutting costs in the ER.
  • How private equity works.
  • The impact on you when PE takes over.
  • The payout of various situations.

Resources Mentioned:

Tags

Private equity, cutting costs, buyout, equity, ER doctors, emergency medicine, emergency room

by 
Scott Wisniewski, EA