3D printing plays a pivotal role in the growth and development of medical technology devices.

Private equity (PE) firms are making significant strides in acquiring physician medical practices, and they are now exploring ways to integrate 3D printing technology into these practices to enhance patient care and operational efficiency.

In recent times, PE firms have been aggressively acquiring and consolidating individual medical offices in various specialties such as urology, ophthalmology, cardiology, oncology, radiology, and orthopedics. This surge in acquisitions is happening concurrently with the resumption of postponed elective surgeries in the post-Covid era. As restrictions ease and patients regain confidence, procedures like knee replacements are becoming more common, which, in turn, drives up sales for companies like J&J that provide medical devices and prosthetics.

However, it’s worth noting that smaller medical practices, especially those with senior physicians who are nearing retirement, may lack the resources and motivation to invest in new technologies like 3D printing. Traditionally, PE acquisitions focused on cost reduction, but the new trend is to prioritize growth and innovation within physician practices. This shift presents a unique opportunity to integrate 3D printing technology, as it can significantly enhance patient care and operational efficiency.

PE-owned physician practices typically operate through an optimized business and IT platform. These platforms can facilitate the introduction and training of physicians on the use of 3D printing and other new technologies. There are various models for 3D printing integration that these practices can adopt, including direct investments in 3D printing, utilization of 3D printing service providers, or a hybrid approach.

Furthermore, companies that invest in integrating 3D printing technology may be eligible for the Research and Development (R&D) Tax Credit, which is now a permanent feature. The R&D Tax Credit is available for companies that develop new or improved products, processes, or software. Wages for technical employees involved in creating, testing, and refining 3D printed prototypes can be included as a percentage of eligible time spent for the R&D Tax Credit. Similarly, the time spent integrating 3D printing hardware and software into existing processes is also considered an eligible activity. Additionally, the costs associated with the filaments used during the development process can be recovered.

Whether used for prototyping or final production, 3D printing has immense potential to improve healthcare by enabling the creation of high-quality, customizable, and flexible medical devices with complex structures. Therefore, the PE acquisition process, with its capital investment and business platforms, should embrace and expand the utilization of 3D printing technology in medical practices.

In conclusion, private equity firms see tremendous value in acquiring physician medical practices and are now actively considering the integration of 3D printing technology. By doing so, they can enhance patient care, improve operational efficiency, and potentially gain access to R&D Tax Credits. 3D printing has the potential to revolutionize the healthcare industry, and its adoption in physician practices is a significant step in that direction.

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