Health Affairs November 8, 2024
Private-equity firms’ rapid pace of health care acquisitions have prompted discussions about their influence on the US health care system. Policy makers, especially at the state level, are exploring ways to regulate private-equity firms’ involvement in physician practices, hospitals, and nursing homes. Debate continues over whether private equity’s role in health care is helpful or harmful to patients.
In this article, we will first explain the private-equity investment strategy and its recent growth in health care, specifically in physician practices and hospitals. Second, we will analyze the state-level landscape of laws and regulations surrounding private equity in health care. Third, we will explore the implications of those laws and regulations. State-based policies are often models for future federal-level policies and...