DOTmed April 25, 2024
Nearly a quarter of the healthcare companies that declared bankruptcy in 2023, a record year for healthcare bankruptcies, were owned by private equity firms, according to a new report from a nonprofit financial watchdog group.
The report by the Private Equity Stakeholder Project (PESP) looked at 80 healthcare companies that filed for bankruptcy last year and found that 17 — including Envision Healthcare, a physician staffing firm, and YesCare, which provides healthcare services in prisons and jails — had private equity ownership.
In addition, another 12 bankruptcies involved companies with venture capital backing.
The number of healthcare bankruptcies affecting PE-backed companies has increase over 112% since 2019, according to the report.
Private equity firms have an “excessive” reliance on debt...
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