re: Oregon becomes first state to end private equity and corporate control of doctor practices

I have zero trust for anything coming out of Oregon these days.

I don't think they have thought through the downstream effects of this.

For example, many urgent care centers are chains, and therefore corporate owned.

Many businesses bought out by private equity are distressed and headed for bankruptcy.

Just spitballing here but I wouldn't be surprised if availability of care goes down and costs go up.

Either way will be fun to watch it unfold.

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Good.most PE people should be in jail

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It is dishonest representation of return on investment of PE. Their ROI excludes some of their reserve funds yet they charge fees for their reserves funds.

Their interest is short term ROI and not long term anything…of all things that might be important to society…like healthcare.

For this.

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The sentiment from the rank and file has been overwhelmingly negative, whether they’re right or wrong doesn’t really matter in my opinion.

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If you are talking about who I think you are, it isn’t PE related. That’s more on the side of they were acquired by another firm and they don’t like changing their ways to the new firms ways, doesn’t really have to do with PE as that’s an issue regardless of PE backing with mergers or acquisitions happen

I haven’t heard yet from anyone in that area that the PE side has any real visibility at all

But eventually they (the PE) has to have a play right?

I just don’t see what the move or the out is for PE in this world. Who can they “sell to” so to speak?

I mean for the big one in EA, their only buyers are extremely limited

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I just don’t see what the move or the out is for PE in this world. Who can they “sell to” so to speak?

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We’re becoming more of a serviced based economy, and technology is the name of the game. If you can develop the best machine learning, OCR, or other technologies, you’re winning in the space and that takes cash.

It’s about expanding services and building economies of scale in theory, what PE thinks they’re good at.

The selling point would be that neither accountants nor healthcare professionals are operations people. PE can bring in their people to streamline and consolidate operations to make you more efficient and profitable. And, like I said, with accounting specifically can make a cash investment for technology… we know how that actually works out in practice though

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vet practices

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It is incredible how PE has literally doubled the cost of pet ownership in the last few years.

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Love when government tells private businesses how they can operate

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I generally agree, but the the healthcare industry is HEAVILY controlled by the government already. Individual doctors have massive levels of laws and regulations they must already uphold.

They are already being told how they can operate, and have been for decades.

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It is incredible how PE has literally doubled the cost of pet ownership in the last few years.

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Its a bunch of factors but yes Corporate and PE firms buying out older vets have driven the cost up.

Covid played a huge factor in vet prices. There was a huge boom in the industry while everyone was at home and had disposable income. At that time PE firms were buying up smaller practices at huge multipliers and that type of money isnt something you pass up. Costs continued to increase and demand has slowed causing a lot of those practices to close up shop.

Vet medicine prices for that past 2 decades were always under what they should have been. Mainly because veterinarians are notoriously bad business owners, its not what they went to school for. But now vet medicine in the PE world is following human medicine. They are utilizing licensed technicians more, skirting VCPR rules with vets, while charging more. Private practices are slowing closing as they cant keep up. Those PE firms get massive purchase discounts from distributors and manufacturers leaving private practices paying more for the same product.

Now with inflation, increased costs, more competition and corporate/PE involvement, the avg lifetime cost of owning a dog is averaging over $20,000.

Private Equity. Context clues aren't your strong suit eh pal?