In an article published The Wall Street Journal, Bass, Berry & Sims attorney Angela Humphreys discussed the impact the novel coronavirus (COVID-19) is having on private equity backed-healthcare management companies, despite industry hopes for access to federal relief money.
“There’s a lot of discussion in play as to whether there are certain avenues that could be pursued. I don’t think we’ve found a silver bullet to do that to date,” explained Angela.
Over the past several years, private equity firms invested billions of dollars into physician practice management companies to help run the business side of doctors’ offices. However, lockdowns across the country have resulted in plummeting patient visits among providers of nonessential medical care, putting added pressure on some providers already dealing with heavy debt loads.
Still, there are potential remedies, as Angela explored considerations for practices to determine whether they are eligible for SBA loans or Accelerated and Advance Payment Program for Medicare as relief under the CARES Act.
The full article, “Physician Practice Managers Brace for Impact of Coronavirus Slowdown,” was published by The Wall Street Journal on April 8 and by Private Equity News on April 11 and is available online (subscriptions required). Angela’s quote was also featured in WSJ Pro-Private Equity on May 3.
For additional insights on this topic, read our recent alerts, “Middle-Market Healthcare Private Equity M&A Trends and Terms in the Current COVID-19 Environment” and “Are You an Affiliate? Guidance for Physician Practice Management Companies under the Paycheck Protection Program.”