Lexology February 25, 2025
Private equity (PE) investment in the U.S. healthcare sector faces a complex and evolving regulatory and legislative landscape. Both federal and state authorities are intensifying scrutiny of PE investment, driven by concerns about market consolidation, quality of care, corporate profiteering and lack of financial transparency. As “headwinds” mount, particularly at the state level, PE firms and the healthcare businesses in which they invest must be prepared to adapt their consolidation strategies.
Federal Regulation and Legislation Related to Healthcare PE Will Likely Decrease
At the federal level, agencies such as the Federal Trade Commission (FTC) and the Department of Justice (DOJ) have heightened their oversight of PE activities in healthcare in recent years. In March 2024, the FTC conducted a workshop...