HealthExec February 12, 2025
Newly released research shows private equity firms were linked to more than half of the bankruptcies filed by large corporations in 2024. In healthcare, the number of those filings is higher than most sectors of the economy, second to only consumer discretionary retail.
According to a report from the nonprofit watchdog Private Equity Stakeholder Project (PESP), 56% of large corporate bankruptcies in all industries had a history of private equity ownership. “Large,” in this context, refers to entities with liabilities exceeding $500 million. Of the eight such filings in healthcare last year, seven companies had a history of private equity ownership.
Further, the number of healthcare bankruptcies linked to private equity exceeded those in the broader economy. While 11%...