As investor interest in cardiology continues to surge, private equity has become an increasingly prominent force shaping the landscape of the specialty.
At the same time, heightened concerns over physician autonomy and long-term practice stability are prompting many cardiology groups and healthcare leaders to carefully weigh the implications of private equity involvement.
Vance Chunn, CEO of Mobile, Ala.-based Cardiology Associates, joined Becker’s to discuss why his group has remained independent despite private equity bids.
Question: Can you talk a little about what’s been driving you to remain independent, and what you see as the benefits of that?
Vance Chunn: I think there is a place for private equity. Some smaller groups don’t have leadership or good financial footing, and they can’t recruit or get the expertise they need. For those practices, private equity might be a lifeline.
But for larger groups like ours — we have 54 providers, a mix of cardiologists and advanced practice providers — we’re considered mid-size. We’re not 100 providers, but we’re not small either. Groups like ours, that have good leadership, sound finances and capital, are much more capable of remaining independent.
But it also depends on the market and the payers. You have to be able to compete with hospital-employed physicians who have more infrastructure for quality performance and outcomes measurement.
For us, the big thing is controlling our own destiny. I know a lot of cardiology groups that have integrated with hospitals. I’ve never heard anyone come back and say, ‘That was the best thing I ever did.’ Nobody says, ‘I turned over control of my practice and now feel so much better.’ I just don’t hear that.
Younger physicians don’t always know what it’s like to be independent. Older ones do — they’ve run their own practices, called the shots, and it’s hard for them to accept being integrated with a hospital or private equity. Younger folks are more focused on work-life balance — they’re fine being told where to be and treated decently. They just don’t know the difference.
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