Health Affairs May 8, 2024
Private equity (PE) in health care is increasingly being viewed as a profit-driven horseman of the apocalypse. While this portrayal is merited in many respects, PE can also play a positive role in health care reform. While PE firms need to be reined in overall, they should be encouraged to invest in entities—such as independent primary care groups and accountable care organizations (ACOs)—that need additional capital to make the transition to value-based care.
Reasons For Serious Concern
Before we get to that, here’s a short primer on the documented effects of private equity on patients and health care providers.
Around 200 acute care hospitals are PE-owned, and the quality of care has suffered at many of them. According to one...
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