NEJM February 8, 2025
Global private equity investments in health care reached $446 billion between 2018 and 2022, fueled in part by demographic trends, such as aging populations and increased life expectancy.1 Private equity firms invest in private companies with the aim of restructuring, streamlining, or expanding operations to generate high returns for investors in short periods. Although private investments in health care aren’t inherently problematic, the possibility that private equity firms will prioritize short-term profitability over long-term investments in improving patient care raises concerns. Americans might assume that the rapid increase in private equity investments in health care is primarily a U.S. issue, given the organization of the U.S. health care system and its reliance on private funding, but other high-income countries have...
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