The following article, written by Heather S. Miller, was published by the Palm Beach County Medical Society.
The Affordable Care Act (ACA) and passage of the Medicare Access and CHIP Reauthorization Act (MACRA) and its primary vehicle, the Merit-Based Incentive System (MIPS), have been transformative influences in the health care sector. Despite attempts to repeal and replace the ACA, the sentiment underlying MACRA – the transition from volume to value-based payments – is here to stay. Many small practices seem reluctant to take MACRA seriously, despite the fact that it puts yet another significant percentage of a provider’s Medicare reimbursements at risk. Large practices, understanding the uncertainties of complex payment reforms requiring advanced technology and business savviness to remain competitive, are responding by merging with other groups, joining hospital systems, or selling their practices to private equity investors. This niche is well-suited for private equity firms, as they feed on uncertainty.