Ophthalmology has caught the attention of private equity interest, specifically in retina care.
The interest from private equity firms has driven a number of changes in how retina practices operate and grow, according to a July 31 article by VMG Health. Here are five things to know about PE investment in ophthalmology and retina care:
1. Retina Consultants of America is the largest retina management services organization. The group received funding from Webster Equity Partners in 2020 and holds 23 brands in 200 locations across the U.S.
2. Prism Vision Group is another large MSO and has made 21 acquisitions, most of which were retina care practices. PVG was initially known as New Jersey Retina before being funded by Quad-C Management in 2018.
3. There are nearly 40 private equity-backed eye care MSOs in the country, nearly all of which are partnered with or employ retina specialists. Many of these are part of general ophthalmology groups.
4. Private equity ownership in the retina care MSO space has an investment horizon of five to seven years, with a 25% return for investors.
5. The article highlighted that patient experience should stay front of mind for investors in this space. VMG's recommendation is that PE-owned MSOs and eye care practices should focus on patient welfare, physician autonomy and high standards of care.