Becker's Healthcare January 22, 2025
While private equity activity in healthcare has been high over the last several years, a more recent rise in bankruptcies and defaults points to a possible rough patch for healthcare PE investments.
According to The Wall Street Journal, debt defaults and bankruptcy filings by physician groups and other healthcare organizations have more than doubled each year since 2022. PE-owned healthcare providers also represent the majority of bigger companies with assets over $100 million that filed for bankruptcy or defaulted during that same period.
On Jan. 15, HHS released a report warning of the harmful effects of PE involvement in healthcare. The report stems from a March 2024 request for information into how healthcare market transactions by health systems, insurers,...