Practice Types and Private Equity: A discussion with Kathleen McKeon

Chuck and Chris welcome Kathleen McKeon as our guest to discuss practice types, including: 

• academic
• private
• PE-backed private
• an employed positions

Dr. McKeon has personal experience with PE and shares insights for us all to consider.  We also learn a bit about her personal journey joining a well-known sports practice and succeeding in a "privatademic" environment. 

Dr. McKeon references Ben Schwartz' Substack called 'The Surgeon's Record' as a great resource.

See www.practicelink.com/theupperhand for more information from our partner on job search and career opportunities.

The Upper Hand Podcast is sponsored by Checkpoint Surgical, a provider of innovative solutions for peripheral serve surgery. To learn more, visit https://checkpointsurgical.com/.

As always, thanks to @iampetermartin for the amazing introduction and concluding music.

For additional links, the catalog.  Please see https://www.ortho.wustl.edu/content/Podcast-Listings/8280/The-Upper-Hand-Podcast.aspx

Transcript

The podcast episode featured a conversation between Charles, Christopher, and their guest Kathleen McKeon, focusing on private equity in healthcare and practice models for hand surgeons. Kathleen shared her experience working in a private equity-backed practice at Andrews Sports Medicine in Birmingham, explaining how the transition affected her day-to-day work and the importance of practice culture and leadership. They discussed the basics of private equity, management service organizations (MSOs), and considerations for young physicians evaluating job opportunities. Kathleen highlighted the balance between clinical work, leadership roles, and academic involvement, and the learning curve faced by new surgeons in private practice. The hosts and guest also touched on the upcoming Hand Society meeting, pre-course offerings, and the value of continued education and engagement in the field. The episode aimed to provide practical insights for trainees and early-career surgeons navigating different practice settings.

Summary

The meeting began with Charles and Christopher discussing the format and goals of their podcast episode. Christopher acknowledged Shobit Minhas for the episode idea and mentioned his graduation trip at UT Southwestern. The conversation then shifted to introducing their guest, Kathleen McKeon, who shared her background, including her medical education at Yale and WashU, and her current role at Andrews Sports Medicine in Birmingham, Alabama. Charles noted their long-standing friendship and discussed his experience with patients who had been treated by him or his colleagues, highlighting the lasting impact of their work.

Kathleen's Career Evolution Discussion

Kathleen discussed her career evolution from treating athletes and performing hand surgery to becoming the hand fellowship director at UAB, where she maintains a balance between academic and private practice responsibilities. Christopher and Charles reminisced about Kathleen's time at Washington University, particularly her memorable Halloween costume as Dr. Gelberman's post-operative dressing. The conversation concluded with plans to discuss how Kathleen approached her job search and her experience with different practice models, including her current position in a private equity-owned practice.

Private Equity Practice Evaluations

Kathleen discussed how physicians should evaluate jobs in private equity-backed practices, emphasizing the importance of examining practice culture, partnership contracts, and leadership quality. She explained that private equity works by purchasing businesses to achieve short-term financial gains, often through management services organizations (MSOs) that act as middlemen to navigate regulatory requirements. Kathleen advised that while private equity involvement is not inherently good or bad, physicians should carefully consider the specific practice's leadership and long-term plans when evaluating such opportunities.

Hand Surgeon's Experience at Andrews

Kathleen discussed her experience as the first hand surgeon at Andrews, sharing that while the initial busy pace was challenging, she found it rewarding and enjoyed taking general call for the first 5-6 years. She addressed concerns about overhead costs at Andrews, explaining that these had been effectively managed under CEO Lisa Warren's leadership, with the practice maintaining competitive compensation through efficient RVU generation. Kathleen highlighted the unique aspects of treating elite athletes, noting the additional administrative burden but also the satisfaction of working with a motivated patient population, and discussed her involvement in leadership roles including serving as a managing partner for six years and her current work on developing an ASC.