Health Affairs June 18, 2024
Numerous academic publications, newspaper articles, and government reports have addressed private equity (PE) investment in health care entities, including nursing homes, hospitals, and physician practices. Proponents argue PE investment brings much-needed financial capital, allowing health care providers to renovate aging facilities, invest in the latest technology, spur innovation, and enhance operational efficiency. However, there are also concerns that PE investment has been associated with higher prices, lower quality, and inadequate staffing levels. Such changes could lead to patient harm, even death.
In response to concerns over PE involvement in health care, states and the federal government are turning their attention to this issue. Even President Joe Biden noted concerns about PE investment in nursing homes during his 2024 State of...