Private Equity Sees Billions In Eye Care As Firms Target High-Profit Procedures

Private equity firms are seeing increasing opportunity in ophthalmology firms, reflected in the increase in multimillion-dollar investments in the industry in recent years

“Acquisitions have escalated so much that private equity firms now are routinely selling practices to one another,” Kaiser Health News reported. 

While private equity groups can provide investments for physicians to expand their practice and negotiate better drug and supply contracts, some studies suggest their focus on profitability could affect patient care.

This private equity interest is expected to continue, particularly as increasing margins make it more difficult for independent groups to break even.

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Ophthalmology Consultants, for example, is a part of St. Louis-based EyeCare Partners, a private equity-backed eye group that boasts a portfolio of 300 ophthalmologists and 700 optometrists in 19 states.

The group was acquired by private equity firm Partners Group in 2019, one of the many PE firms looking to ophthalmology groups.

Additionally, Retina Consultants of America, another eye group, was formed in 2020 with a $350m investment from Webster Equity Partners. The PE-backed group invested in the practices of four of the top Avastin prescribers, and nine of the top Lucentis prescribers. 

Source: Becker’s ASC

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