Is all well with PhyMed?

[Outrigger]

Friend of mine, relatively inexperienced, is thinking of taking a job with PhyMed, despite my warnings about national groups.

I did a websearch and found this article

PhyMed Management LLC: Debt Placed On Non Accrual

On April 26, 2022 Ares Capital (ARCC) – one of two BDC lenders to PhyMed Management, LLC – an anesthesiology company – reported its IQ 2022 results, which included a sharp write-d…

bdccreditreporter.com

which seems to indicate financial difficulties the group is experiencing.

Anybody have further, off the record, info?

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[gasdoc77]

Word is that one of the large Phymed groups (AMG) in Nashville TN is selling to USAP in exchange for USAP assuming the debt. I think a guy I did residency with landed there.

 

[amyl]

Friend of mine, relatively inexperienced, is thinking of taking a job with PhyMed, despite my warnings about national groups.

I did a websearch and found this article

PhyMed Management LLC: Debt Placed On Non Accrual

On April 26, 2022 Ares Capital (ARCC) – one of two BDC lenders to PhyMed Management, LLC – an anesthesiology company – reported its IQ 2022 results, which included a sharp write-d…

bdccreditreporter.com

which seems to indicate financial difficulties the group is experiencing.

Anybody have further, off the record, info

Pm me

 

[Howard888]

Not sure why USAP would buy this-they are already struggling staffing many of their groups and AMG already struggles-I know lots of people who have left-again a group who treats their junior partners terrible-thinking the lure of Nashville is enough (just like Austin or Denver right-at least consistent). Throw in NSA and inability to negotiate higher rates and Napa very prominent in Tn….seems just a paper move-to make numbers better and get some short term profit. Alas, another great cities group bites the dust.

 

[Outrigger]

Word is that one of the large Phymed groups (AMG) in Nashville TN is selling to USAP in exchange for USAP assuming the debt. I think a guy I did residency with landed there.

What of their other groups? Will they remain under the PhyMed umbrella? I believe AMG was the original PhyMed group.

 

[amyl]

Not sure why USAP would buy this-they are already struggling staffing many of their groups and AMG already struggles-I know lots of people who have left-again a group who treats their junior partners terrible-thinking the lure of Nashville is enough (just like Austin or Denver right-at least consistent). Throw in NSA and inability to negotiate higher rates and Napa very prominent in Tn….seems just a paper move-to make numbers better and get some short term profit. Alas, another great cities group bites the dust.

What’s NSA?
Agree. There’s lots of nice places to live… more “desirable” places that didn’t have to pay probably do now and they’re slow to catch on.

 

[Howard888]

No surprises act…basically is going to cap what rates USAP can get.

USAPs model is buy the group with the largest rates in the state…then use those rates to attract smaller groups by splitting the “lift” of raising their rates/revenue to the original purchased group…then develop a market share so large you can push up commercial rates even more via leverage.

Problem is now USAP, and other PE groups have the highest rates in the state. Insurance companies will not raise further-with no surprises act they would rather go out of network and arbitration….because they are likely to win.

Good example…say USAP X wants BCBS to raise their rate from 140 to 150. Prior to NSA they likely owned 30-50% of hospital contracts in the state and could get it. Now BCBS would rather go out of network and arbitration and argue that they only pay academic. University of X 110 and their median in network rate is 120.

Not only will BCBS likely win but USAP then eats the cost of arbitration.

So no increase in rates until the rest of the state catches up which might never happen. Revenue flat unless commercial % increases or units per FTE.

But costs go up…CRNAs. Nurses, admin …ultimately USAPs earnings down. PE and partners not happy. Hence why they are getting rid of facilities with marginal profits. They know they can’t increase rates so cut any facilities that aren’t returning 15% plus.

So why buy a group that is struggling in Nashville…both reputation and financially? Maybe because it’s Nashville and they’ll enter a big market…but scot of living in Nashville high and recruiting hard. If they do but I expect USAP to cut low margin facilities just like they are doing elsewhere to insure PE return.

 

[georgine]

What of their other groups? Will they remain under the PhyMed umbrella? I believe AMG was the original PhyMed group.

Hello folks. I have info you need to know about PhyMed. Do NOT be fooled by their website. They are currently in BANKRUPTCY filing! Stay far away from this organization!

 

[georgine]

Hello folks. I have info you need to know about PhyMed. Do NOT be fooled by their website. They are currently in BANKRUPTCY filing! Stay far away from this organization!

I don’t know what will happen legally with contracts that the MDs and CRNAs have with PhyMed. I suspect that since the company is dissolving, the contracts would become meaningless. Unfortunately, I do know that PhyMed forced it’s professional employees to purchase stock in the company. And several friends are now out hundreds of thousands of dollars! Horrendous! PhyMed was always a money-generating vehicle for its management…never treated its MDs and CRNAs well.

 

[gasdoc77]

I don’t know what will happen legally with contracts that the MDs and CRNAs have with PhyMed. I suspect that since the company is dissolving, the contracts would become meaningless. Unfortunately, I do know that PhyMed forced it’s professional employees to purchase stock in the company. And several friends are now out hundreds of thousands of dollars! Horrendous! PhyMed was always a money-generating vehicle for its management…never treated its MDs and CRNAs well.

I heard something 3rd hand about this. Is it true that some of the original partners had been "bought out" with 7 figures worth of this stock that has since dissolved? If so, should be a cautionary tale to independent private practices about selling out.

 

[aneftp]

I heard something 3rd hand about this. Is it true that some of the original partners had been "bought out" with 7 figures worth of this stock that has since dissolved? If so, should be a cautionary tale to independent private practices about selling out.

Lol. Sorta. The original sellers/partners. They get 7 figures cash taxed at 15-20% long term capital gains. PLUS STOCKs (internal if not publicly traded).

The reason we all know this is not only because of direct knowledge. It is also literally is posted on DIVORCE PROCEEDINGS!! Which are public records in multiple states what the buyout was. When original partners get divorce and the ex spouses want their share of the money. They file motion disclosing what was in the buyout. One of the bigger buyouts was one of the 8 original partners got 8 million cash from Napa buyout in East/northeast area.
.

 

[chocomorsel]

Lol. Sorta. The original sellers/partners. They get 7 figures cash taxed at 15-20% long term capital gains. PLUS STOCKs (internal if not publicly traded).

The reason we all know this is not only because of direct knowledge. It is also literally is posted on DIVORCE PROCEEDINGS!! Which are public records in multiple states what the buyout was. When original partners get divorce and the ex spouses want their share of the money. They file motion disclosing what was in the buyout. One of the bigger buyouts was one of the 8 original partners got 8 million cash from Napa buyout in East/northeast area.
.

Damn. That’s a lotta dough.
Never get married again! Learned my lesson.

 

[narcotics999]

Damn. That’s a lotta dough.
Never get married again! Learned my lesson.

Marry a richer one