The study by Yu et al in this issue of Pediatrics1 is the first study to explore the consequences of physician management companies (PMCs) on costs and outcomes of neonatal care. As the proportion of the economy devoted to health care has continued to expand in the United States to 18.3% of the gross domestic product in 2021, private equity funds and PMCs have increased their involvement in the health care market. First seen in the 1990s, both private equity firms, which are private or publicly owned companies that purchase or invest in hospitals or physician practices; and PMCs, which are companies that both purchase and run the business side of a physician practice including negotiating fee structures with insurance companies, have substantially increased their involvement in the health care system since 2010. Specialties particularly affected include dermatology,2 fertility and obstetric care,3,4 ophthalmology,5 and...
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Commentary|
March 17 2023
Profits, Providers, and Private Companies: What Happens When Wall Street Owns Your Neonatal Care
Scott A. Lorch, MD, MSCE
aDepartment of Pediatrics, The Children’s Hospital of Philadelphia
bCenter for Clinical Epidemiology and Biostatistics, Perelman School of Medicine, University of Pennsylvania, Pittsburgh, Pennsylvania
cLeonard Davis Institute for Health Economics, University of Pennsylvania, Pittsburgh Pennsylvania
Address correspondence to Scott A. Lorch, MD, MSCE, 2716 South St, Rm 19-473, Philadelphia, PA 19146. E-mail: lorch@chop.edu
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Address correspondence to Scott A. Lorch, MD, MSCE, 2716 South St, Rm 19-473, Philadelphia, PA 19146. E-mail: lorch@chop.edu
FUNDING: No external funding.
CONFLICT OF INTEREST DISCLOSURES: The authors have indicated they have no conflicts of interest relevant to this article to disclose.
Pediatrics e2022060788.
Article history
Accepted:
January 27 2023
Connected Content
This is a commentary to:
Physician Management Companies and Neonatology Prices, Utilization, and Clinical Outcomes
Citation
Scott A. Lorch; Profits, Providers, and Private Companies: What Happens When Wall Street Owns Your Neonatal Care. Pediatrics 2023; e2022060788. 10.1542/peds.2022-060788
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