The Australian Market Landscape

In Australia, the landscape of medical, dental, and allied health practice acquisitions has evolved significantly over the past two decades. In General Practice alone, private equity acquisitions numbered 256 of the 446 clinics purchased between 2017 and 2022[1].

These acquisitions offer benefits for Doctors and health care professionals including:- attractive retirement options, capital injections, broader referral networks, better bargaining power with suppliers, and fewer administrative responsibilities for Principals.

Before founding Piper Health, Kristin Carney worked in four public and private equity funded corporations, Her firsthand experience underscores the mostly positive impact these acquisitions have had on doctors, staff, patients, and their communities.

One notable change in recent years has been the increased flexibility afforded to doctors regarding their commitments. This adaptability allows practitioners to tailor their involvement to better suit their needs, contributing to a more rewarding working environment.

Corporations are playing an increasingly important role in fostering positive professionalism and delivering high-quality facilities and services. Their highly skilled teams are dedicated to enhancing facilities and services and growing each practice’s profitability.

However, Kristin’s experience as a registered nurse and family medical practice owner also allows her to identify the potential pitfalls when profit motives overshadow the human aspect of medical practice. Mismatched expectations, motivations, and cultural differences can lead to partnership failures. Moreover, protracted due diligence and valuation processes can leave medical practice owners distressed and fatigued.

[1] https://www.mja.com.au/journal/2024/220/7/private-equity-investment-health-care-delivery-australia-2008-2022#:~:text=The%20medical%20specialty%20most%20frequently,single%20practices%20to%20large%20networks.