2024 Richmond Healthcare Forum: Growth Considerations

Key takeaways from the Growth Considerations: Private Equity versus Independent Peer panel discussion

Professionals across various roles in the healthcare sector gathered together at the Country Club of Virginia for an evening of knowledge sharing, networking, and relationship building. This event was hosted by Prospect Blue, Truist Wealth, Williams Mullen, and Keiter. The forum included two panel discussions. The first on HR and Legal Compliance and the second panel discussed Growth Considerations: private equity versus remaining independent. The event provided healthcare industry leaders an opportunity to ask about the latest trends and regulatory developments within the industry and to gain insights from the experiences of the featured panelists.

In the second panel discussion we heard from physicians who took different approaches to the growth of their practice through a series of peer-to-peer mergers and consolidations while remaining independent or by taking on private equity (PE) funding. The panel also addressed audience questions regarding the valuation of medical practices and the challenges and benefits to taking on outside funding. This discussion was moderated by Jon Hudson, Managing Director of Healthcare Investment Banking at Truist and included the following panelists:

• Dr. Mitesh Amin – Founder | Aligned Cardio
• Nicholas Grosso, M.D. – President | The Centers for Advanced Orthopaedics
• Tynan Kugler, CVA – Principal | PYA PC
• Louis Levitt, M.D. – Vice President | The Centers for Advanced Orthopaedics

The private equity approach

Dr. Amin, a cardiologist from Richmond, discussed his experience with transitioning his practice, James River Cardiology, to a partnership with a private equity firm, RC Capital. About 15 years ago, he founded a mid-sized practice which grew to about 20 providers. The decision to partner with private equity was driven by challenges in collaborating with hospital systems post-COVID, which seemed more competitive than cooperative. They explored various options and engaged with an advisor, meeting seven to ten private equity groups before choosing one that aligned with their growth and operational goals.

The partnership was seen as a way to manage larger projects and compliance issues that were difficult to handle independently. The two most important factors in making a decision about which PE firm to partner with was the firm’s focus on clinical quality and patient care outcomes. 

Staying independent in the healthcare industry

Dr. Levitt and Dr. Grosso are partners together at the Centers for Advanced Orthopaedics, a private practice that includes their region’s largest group of orthopaedic specialists. They are committed to being physician-owned for as long as possible. They started off with 124 practices coming together and more who wanted to join. The key to maintaining clinical excellence in these larger groups is by being selective about the practices who join. When considering new partners, it is important for them to consider factors such as the physician’s good standing and surgical skills as well as the practice’s reputation within the community.

The practice is managed by doctors who oversee different regions and are committed to a collective leadership style. They believe in fostering a strong company culture that remains competitive and responsive to industry shifts.

This was the 2^nd year for the Richmond Healthcare Forum which provides healthcare industry leaders an opportunity to ask about the latest trends in the industry and to gain insights from the experiences of the featured panelists. Want to stay up to date on healthcare industry accounting and business trends? Sign up for our newsletter.