Private Equity in Otolaryngology: What Is the Impact on Medicare Payments?

Abstract

Objective: This study aims to assess whether private equity (PE) acquisitions of otolaryngology–head and neck surgery (OHNS) practices are associated with changes in Medicare payments and procedure volume. Study Design: A cross-sectional study. Setting: PitchBook and the Medicare Provider Utilization and Payment Data File. Methods: PE acquisitions of OHNS practices were determined using the PitchBook database and linked to the 2016-2022 Medicare Provider Utilization and Payment Data File based on practice address. Non-PE practices were included as control if located in a state where an acquisition occurred, with the index point corresponding to the year of acquisition. Medicare payments for all procedures were totaled and averaged. PE-affiliated and non-PE-affiliated practices were compared before and after the acquisition. Results: A total of 9 acquisitions of OHNS practices across 7 states were identified. Pre-acquisition, PE-affiliated otolaryngologists performed more procedures per year (1289 vs 1006, P