Becker's ASC Review

32 GASTROENTEROLOGY How gastroenterologist pay has changed in the past 10 years By Patsy Newitt Gastroenterology is consistently among the top 10 highest-paid physician specialties, according to Medscape's Physicians Compensa- tion Reports. Here's how gastroenterologist pay has changed over the past 10 years and its ranking among the highest-earning specialties: Is private equity worth it for gastroenterology practices? By Patsy Newitt Private equity is thriving in gastroenterology, with several equity- backed management groups taking over the market. The number of private equity gastrointestinal groups grew by 28 per- cent, to 68, in 2021, according to a report jointly published by consult- ing firm Fraser Healthcare and pharma research firm Spherix Global Insights. The influx of investment, however, is controversial, and many gastroen- terologists warn against the cons of a private equity investment. "This trend has seen growing momentum in the past five years. The field presents an attractive PE target, as a significant portion of gastro- enterologists remain in independent practices with ownership in am- bulatory endoscopy centers," Rami Abbass, MD, a gastroenterologist at University Hospitals in Mentor, Ohio, told Becker's. "The growing regulatory environment, high cost of capital, administrative burdens and challenges of partner recruitment have made private equity at- tractive to some practices. " The high upfront acquisition payment has to be weighed against a potential loss of autonomy, Dr. Abbass said. For these relationships to thrive, physician partners and equity firms need to have shared values and a deep understanding of the regional landscape. But for many gastroenterologists, private equity is the key to thrive and pass on a legacy. "The one thing which I'm very happy about, thank God, is private eq- uity," Rajiv Sharma, MD, owner of Digestive Health Associates in Terre Haute, Ind., told Becker's. "Private equity was perfect for me. Now I have access to capital, right? One thing which always bothered me was for GIs and other practices, unlike other businesses, we really don't have very clear legacy planning. " n 2022: $453,000 Ranking: 6 2021: $406,000 Ranking: 7 2020: $419,000 Ranking: 6 2019: $417,000 Ranking: 7 2018: $408,000 Ranking: 4 2017: $391,000 Ranking: 7 2016: $380,000 Ranking: 4 2015: $370,000 Ranking: 3 2014: $348,000 Ranking: 3 2013: $342,000 Ranking: 4 n AmSurg at the center of $2.5B Envision lender dispute By Laura Dyrda E nvision Healthcare moved AmSurg, which made up around half of the physician staffing firm's earnings last year, to a new affiliate, according to The Wall Street Journal. Envision inked a deal led by investment firms Centerbridge Partners LP and Angelo Gor- don & Co. to move about $2.5 billion in col- lateral away from existing lenders so it could borrow up to $1.3 billion in first-lien loans and $1.3 billion in second-lien loans as part of a plan to repurchase existing debt. The debt repurchase program is expected to low- er Envision's indebtedness by around $600 million, but the lenders aren't happy. Existing lenders said the deal came at their expense, and the lenders are now consider- ing filing a lawsuit, according to the report. The lenders said the deal may violate Envi- sion's debt documents. Envision said it thinks the move is allowed within the terms of their loan documents. Around 80 percent of AmSurg was moved to a new corporate subsidiary, according to the report. n

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