Understanding Orthopedic Practice Models: Private Equity and PSA-Understanding Practice Models: Private Equity and PSA Video

Video Transcription

Video Summary

The video transcript discusses the topics of private equity and Professional Service Agreements (PSAs) in the context of orthopedic practice models. The speakers share insights on their experiences with private equity and PSAs, including negotiations around asset sales, RVU rates, and second bites. In terms of private equity, the focus is on capital partnership to support growth and strategic alternatives for orthopedic groups. They emphasize the importance of aligning values and missions with the chosen partner and ensuring autonomy for physicians. The use of debt and leverage in transactions is discussed, highlighting the need for smart investments and understanding the implications of borrowing money. The importance of having a say in future decisions and the impact of leverage costs are also key points from the conversation. The speakers stress the need for due diligence in selecting partners and ensuring alignment for long-term success.

Keywords

private equity

professional service agreements

orthopedic practices

negotiation process

work RVUs

second bite opportunities

growth strategies

physician involvement

strategic planning

regional growth plans

orthopedic practice models

asset sales

RVU rates

second bites

capital partnership

debt and leverage

smart investments

due diligence