Driving forces and current trends in private equity acquisitions within ophthalmology

Private equity investment in ophthalmology has dramatically increased over the past 20 years. Despite a massive influx in private equity investment in ophthalmology, little is known regarding if and how private equity investment might affect practice behavior. This review seeks to discuss why private equity investment may be expanding in ophthalmology and explore recent data on demographic and billing trends before and after private equity acquisition.

Recent publications have identified ophthalmology and optometry practices acquired by private equity from 2012 to 2021. Practice demographics and provider billing habits before and after private equity acquisition were analyzed from 2012 to 2019 and 2012 to 2017, respectively, using Internal Revenue Service, United States Census, and Medicare fee-for-service data.

Private equity investment in ophthalmology is increasing and may be because of a growing demand from an aging population, fragmented network of healthcare practices, and potential for ancillary billable services. Private equity practices acquired between 2012 and 2019 were mostly in metropolitan areas with higher proportions of private insurance coverage. Ophthalmologists and optometrists in practices acquired between 2012 and 2016 showed increased utilization of diagnostic testing and cataract surgery in the year following private equity acquisition compared with the year prior to private equity acquisition.