Healthcare DIVE April 17, 2024
Another wave of private equity-backed bankruptcies is expected this year, according to the Private Equity Stakeholder Project.
Dive Brief:
- Over 20% of healthcare companies that filed for bankruptcy in 2023 were owned by private equity firms, according to a new report released Wednesday from the Private Equity Stakeholder Project.
- Another wave of private equity-backed bankruptcies is likely this year, as almost all U.S. healthcare companies considered at high risk of default are backed by private equity, the nonprofit said.
- Private equity firms’ “aggressive debt-funded growth strategies” are to blame for the bankruptcies, said Eileen O’Grady, healthcare director at the PESP.
Dive Insight:
Healthcare bankruptcies reached a five-year peak in 2023, according to restructuring firm Gibbins Advisors.
Bankruptcies...
Today's Sponsors
Today's Sponsor