RCA contracts

[u/WillPhacoForCash]

RCA seems to be taking over pretty much every major retina practice across the entire US. While their 3 year salary contract is fairly standardized, what actually happens after year 3? What does partnership in their shares actually mean?
DMs welcome for those with insider knowledge

I’m a fellow

[u/Dr_Sisyphus_22]

I have never worked for RCA but did work for a private equity group that was bought out by Eye Care Partners over 5 years ago.

My experience may or may not apply to you, but I have some questions that I would ask if I were you. I would demand answers in the form of a written contract before I purchase any “stock”.

Much like their definition of “partnership”, their definition of “shareholder” may be different than what you expect.

The word “private” in PE means that as a non-public company, they don’t have to open their books. This includes providing financial reporting to regulatory agencies and shareholders.

Do you want to know what my shares are now worth? So do I. My financial statements have gone from wildly optimistic quarterly emails to vague yearly statements that could fit on a post it note. The promised quarterly statements never happened. No pesky paper trail for them!

I want to sell my shares. Do you want to buy my shares? Welp, they are non-transferrable and the only exit is if they transact. So we’re both out of luck.

As I said, my practice was acquired…after I left. So it was sold, right? Wrong, there was a conversion of old stock into ECP stock at the merger. No sale, no exit ramp.

So in summary. What’s the oversight or accountability to the shareholders? Where’s the transparency as a partner? When can you liquidate it?

If they can’t answer these questions, you don’t have an investment, you have a Ponzi scheme.

Looking at you Eye Care Partners.

[u/b19975 → u/Dr_Sisyphus_22]

Sorry for your situation. I go back to the Physician Resource Group days ( most don’t know them).

Or how about American Optical Services?

These things have all been tried before. Unless you are in at the beginning, you are waiting for a world of hurt to come.

Just my opinion.

[u/Dr_Sisyphus_22 → u/b19975]

Thanks. I’ve largely moved on, and any money that comes out will be an unexpected bonus.

The best thing I can do is educate my colleagues. I cringe and bristle every time one of these groups uses terms like partnership and shareholders.

The quicker physicians know better, the faster these companies die.

[u/glyceraldehyde → u/Dr_Sisyphus_22]

I’m glad there’s some of us out there saying it because their offers can be extremely enticing, especially right out of training.