HIT Consultant October 22, 2024
Private equity (PE) firms, once eager investors in the healthcare services sector, are facing a chilling reality. A confluence of factors including challenges recruiting and retaining physicians, reimbursement headwinds, accelerating labor costs and restrictive antitrust policies, have resulted in a string of high-profile failures, and are casting doubt on the future role of PE in healthcare. This shift has profound implications across the healthcare delivery spectrum – from hospitals and health systems to clinics and physicians and the patients who depend on them.
Historical Private Equity investment
Over the past decade, institutional capital poured into healthcare services and physician practice management companies (PPMs) in particular, with the number of private equity-backed PPM almost doubling, from 350 in 2017 to over...