Harvard Business Review March 20, 2023
Summary.
The topic of private equity firms acquiring hospitals and health systems in the United States has sparked a fierce debate for years about whether the deals were good or bad for communities they serve. A study of 45 leveraged buyouts produced some surprising findings that should guide regulators when considering reforms.
In the decades leading up to the Covid-19 pandemic, acquisitions of hospitals and health systems by private equity firms soared, sparking debate about how the growing influence of PE in U.S. health care would affect costs, quality, and access. Supporters of PE cite its established track record of creating value for companies...
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