Welcome back listeners! In the first episode of The Bonehead Podcast in 2024, we discuss a fascinating paper looking at the emergence of private equity (PE) in the space of orthopaedic surgery. We mainly cover a comprehensive review article in the Journal of the American Academy of Orthopaedic Surgeons (JAAOS) by Dr. Alpesh Patel and his team, titled “Private Equity and Its Emergence in Orthopaedics,” with contributions from several other articles on the topic. In summary, we touch on what private equity is, its model in orthopaedics compared to other specialties, its appeal on both sides of the coin, and risks and considerations of a proposed partnership between PE and orthopaedic surgeons.

References:

Patel AA, Fernandez C, Mazmudar A. Private Equity and Its Emergence in Orthopaedics. J Am Acad Orthop Surg. 2021 Oct 15;29(20):e1005-e1012. doi: 10.5435/JAAOS-D-21-00058. PMID: 34288894.

Boddapati V, Danford NC, Lopez CD, Levine WN, Lehman RA, Lenke LG. Recent Trends in Private Equity Acquisition of Orthopaedic Practices in the United States. J Am Acad Orthop Surg. 2022 Apr 15;30(8):e664-e672. doi: 10.5435/JAAOS-D-21-00783. PMID: 35077400.

​​Bruch JD, Gondi S, Song Z. Changes in Hospital Income, Use, and Quality Associated With Private Equity Acquisition. JAMA Intern Med. 2020 Nov 1;180(11):1428-1435. doi: 10.1001/jamainternmed.2020.3552. PMID: 32833006; PMCID: PMC7445629.

Lachiewicz PF. What's Important: Private Equity Arrangements in Orthopaedic Surgery: Enter at Your Own Risk. J Bone Joint Surg Am. 2024 Jan 23. doi: 10.2106/JBJS.23.01298. Epub ahead of print. PMID: 38261659.

Moses MJ, Weiser LG, Bosco JA 3rd. The Corporate Practice of Medicine: Ethical Implications of Orthopaedic Surgery Practice Ownership by Non-Physicians. J Bone Joint Surg Am. 2020 Jun 3;102(11):e53. doi: 10.2106/JBJS.19.01404. PMID: 32496745.