What We Believe About the Marketplace and the Healthcare World Ahead
Demand for eye services will continue to grow causing markets to become increasingly complex and competitive. Consumerism will further fuel competition. Industry disruptors such as tele-eye services, on-line retail optical business models, and “app-based”, self-diagnosis eye care technologies will continue their rise. In addition, a growing number of community health systems will pursue the eye services business with interest and risk capital investments even though many lack experience in the business of eye care.
Private equity will continue to purchase eye practices, among other specialties, only for as long as the expected returns satisfy their investors who are generally agnostic to the mission of the professional medical practice.
Expensive practice buy-ins for younger providers will challenge the capital structures of independent practices. The best providers will be attracted to the most stable professional practice platforms where doctors are leaders and partners.
Payers will exert downward pressures on price, utilization and total costs of care. Providers will need to be competent in the management of practice productivity. Doctors, working with other partners and expert management support, will achieve greater economies of scale and access a broader array of growth opportunities that better assure success in their markets.