# Private Equity in Healthcare * **Definition:** Private equity in healthcare refers to investment firms that acquire or invest in healthcare companies, including hospitals, clinics, medical device manufacturers, and healthcare technology firms, with the aim of improving operational efficiencies, enhancing service delivery, and ultimately generating a return on investment through strategic management and growth initiatives. * **Taxonomy:** Capital & CTOs / Private Equity in Healthcare ## News * Selected news on the topic of **Private Equity in Healthcare**, for healthcare technology leaders * 24.4K news items are in the system for this topic * Posts have been filtered for tech and healthcare-related keywords | Date | Title | Source | | --- | --- | --- | | 5/26/2025 | [**John Henderson, Vice President, Chief Information & Digital Officer, and CIO at Rady ...**](https://www.beckershospitalreview.com/podcasts/uncategorized/john-henderson-vice-president-chief-information-digital-officer-and-cio-at-rady-childrens-health/) | [[Beckers Hospital Review]] | | 4/8/2025 | [**Healthcare Mly Update: Q1 2025**](https://www.beckershospitalreview.com/strategy/healthcare-ma-quarterly-update-q1-2025/) | [[Beckers Hospital Review]] | | 3/12/2025 | [**CoachCare Acquires VitalTech, Expanding RPM and Virtual Care Capabilities**](https://hitconsultant.net/2025/03/12/coachcare-acquires-vitaltech/) | [[HIT Consultant]] | | 2/7/2025 | [**70 chief strategy officers to know - 2024 - Becker's Hospital Review**](https://www.beckershospitalreview.com/lists/70-chief-strategy-officers-to-know-2024.html) | [[Beckers Hospital Review]] | | 1/16/2025 | [**Private equity poses 'new and unique risks' to healthcare, federal agencies warn**](https://www.healthcaredive.com/news/federal-agencies-private-equity-healthcare-report/737542/) | [[Healthcare Dive]] | | 1/13/2025 | [**Hospitals and private equity: Scathing Senate report shows concerns cross party lines**](https://www.chiefhealthcareexecutive.com/view/hospitals-and-private-equity-scathing-senate-report-shows-concerns-cross-party-lines) | [[Chief Healthcare Executive]] | | 1/8/2025 | [**Private equity reduces patient care while enriching investors, Senate report finds**](https://www.nbcnews.com/news/investigations/private-equity-reduces-patient-care-enriching-investors-senate-report-rcna186636) | [[NBC News]] | | 1/8/2025 | [**Private equity reduces patient care while enriching investors, Senate report finds - AOL.com**](https://www.aol.com/private-equity-reduces-patient-care-110000721.html) | [[AOL]] | | 1/7/2025 | [**Private equity reduces patient care while enriching investors, Senate report finds**](https://www.yahoo.com/news/private-equity-reduces-patient-care-130000232.html) | [[Yahoo]] | | 1/3/2025 | [**Mass. gov. reviewing bill aimed at averting future Steward-style hospital meltdowns**](https://www.healthleadersmedia.com/ceo/mass-gov-reviewing-bill-aimed-averting-future-steward-style-hospital-meltdowns) | [[HealthLeaders Media]] | | 1/1/2025 | [**Alibaba to Sell Sun Art to Buyout Firm DCP for $1.6 Billion - Yahoo Finance**](https://finance.yahoo.com/news/alibaba-sell-sun-art-buyout-110821334.html) | [[Yahoo Finance]] | | 12/12/2024 | [**Why private equity healthcare investment may rise in 2025**](https://www.modernhealthcare.com/mergers-acquisitions/private-equity-healthcare-2025-donald-trump-ambulatory-surgery-centers) | [[Modern Healthcare]] | | 12/11/2024 | [**If Walgreens Sells To Private Equity, Deal May Join Others Under Fire**](https://www.forbes.com/sites/brucejapsen/2024/12/12/if-walgreens-sells-to-private-equity-deal-may-join-others-under-fire/) | [[Forbes]] | | 9/18/2024 | [**Cooley Named Rising Law Firm of the Year in Hong Kong**](https://www.cooley.com/news/coverage/2024/2024-09-18-cooley-named-rising-law-firm-of-the-year-in-hong-kong) | cooley.com | | 9/10/2024 | [**What's Ailing Our Doctors?**](https://www.msn.com/en-us/health/other/what-s-ailing-our-doctors/ar-AA1ql5mv) | msn.com | | 9/3/2024 | [**Private equity ownership of US hospice centers boomed in recent years - study**](https://www.theguardian.com/business/article/2024/sep/03/us-hospice-care-private-equity) | [[The Guardian]] | | 8/22/2024 | [**Riverside agrees to invest in HR tech company GFOS - PE Hub Europe**](https://www.pehubeurope.com/riverside-agrees-to-invest-in-hr-tech-company-gfos/) | pehubeurope.com | | 7/31/2024 | [**Private equity hospitals better off than non-investment hospitals - RevCycleIntelligence**](https://revcycleintelligence.com/news/private-equity-hospitals-better-off-than-non-investment-hospitals) | [[RevCycle Intelligence]] | | 7/23/2024 | [**Fighting The Harmful Impacts Of Private Equity On Our Economy, Public Pension Funds And ...**](https://www.aft.org/resolution/fighting-harmful-impacts-private-equity-our-economy-public-pension-funds-and-healthcare) | aft.org | | 7/17/2024 | [**Private equity firms back less than 4% of healthcare providers, report finds - HealthExec**](https://healthexec.com/topics/healthcare-management/healthcare-economics/private-equity-firms-back-less-4-healthcare-providers-report-finds) | healthexec.com | | 7/15/2024 | [**Kirkland Private Equity Partner Cohn Jumps to Latham in Boston - Bloomberg Law News**](https://news.bloomberglaw.com/health-law-and-business/kirkland-private-equity-partner-cohn-jumps-to-latham-in-boston) | [[Bloomberg Law]] | | 7/14/2024 | [**Kirkland Private Equity Partner Cohn Jumps to Latham in Boston**](https://news.bloomberglaw.com/business-and-practice/kirkland-private-equity-partner-cohn-jumps-to-latham-in-boston) | [[Bloomberg Law]] | | 7/9/2024 | [**Antitrust focus on private equity funds and serial acquisitions - Lexology**](https://www.lexology.com/library/detail.aspx?g=704e9ba2-3c17-4d8b-9492-918a7b55c7e8) | lexology.com | | 7/6/2024 | [**Significant Opportunities In Private Equity; An Overview Of The Private Equity Market - TechBullion**](https://techbullion.com/significant-opportunities-in-private-equity-an-overview-of-the-private-equity-market/) | techbullion.com | | 6/16/2024 | [**Countering the Influence of Private Equity for Physician Groups**](https://www.healthitanswers.net/countering-the-influence-of-private-equity-for-physician-groups/) | [[Health IT Answers]] | ## Topic Overview (Some LLM-derived content — please confirm with above primary sources) ### Key Players - **Private Equity Firms**: Investment firms that acquire healthcare providers and services, often focusing on maximizing financial returns. - **Leonard Green & Partners**: Another private equity firm criticized for prioritizing profits over patient care in its healthcare investments. - **Prospect Medical Holdings**: A private equity-backed healthcare company that has filed for bankruptcy, highlighting the challenges faced by PE in healthcare. - **Biden Administration**: Emphasized the need for increased transparency in healthcare transactions related to private equity. - **CVS Health**: A healthcare company seeking private equity partners to fund its operations, particularly after acquiring Oak Street Health. - **California Lawmakers**: Legislators considering new regulations to oversee private equity acquisitions in healthcare. - **Varsity Healthcare Partners**: Closed its third private equity fund, VHP III, at $417 million, expanding its investment capabilities in healthcare. - **Risk Strategies**: A specialty insurance brokerage that has expanded its Private Equity Practice, indicating the growing intersection of private equity and healthcare. - **Vin Phan**: Senior managing director at Ankura, emphasizing private equity's role in driving healthcare innovation. - **Beth Israel Deaconess Medical Center**: Conducted a study revealing the negative impact of private equity acquisitions on patient care experiences. - **Comvest Private Equity**: Invested in Riccobene Associates Family Dentistry, marking its 14th healthcare services platform investment. - **Leonard Green**: A private equity firm that owns Prospect Medical Holdings, associated with multiple health violations and hospital closures due to a focus on financial goals. - **BCI**: A private equity firm focusing on healthcare investments, recently appointed Jon Salon to lead its healthcare initiatives. - **Apollo Global Management**: A private equity firm scrutinized for its management of healthcare facilities and the impact on patient care. - **Platinum Equity**: A private equity firm that has acquired NDC, marking a significant transaction in the healthcare sector. - **Steward Health Care**: A healthcare system that filed for bankruptcy, highlighting concerns about private equity's impact on healthcare. - **Centers for Medicare & Medicaid Services (CMS)**: U.S. government agency that has introduced regulations requiring greater disclosure of private equity ownership in healthcare. ### Partnerships and Collaborations - **Private Equity and Healthcare Providers**: Private equity firms are increasingly forming partnerships with healthcare providers to enhance operational efficiencies and consolidate services. - **Federal Trade Commission, Justice Department, and HHS**: Jointly investigated the impact of private equity on healthcare, advocating for stronger oversight. - **Private Equity Stakeholder Project (PESP)**: A watchdog group advocating for accountability in private equity, particularly in healthcare, collaborating with lawmakers to address corporate greed. - **Family Offices and Private Equity**: Family offices are allocating more to private equity, reflecting a shift in investment strategy towards healthcare and technology sectors. - **Risk Strategies and Bradford Leung**: Appointment of Leung to enhance the firm's private equity practice, showcasing collaboration in healthcare investment. - **Enhanced Healthcare Partners**: Announced an investment in Hallmark Health Care Solutions, a healthcare consulting and technology firm. - **Bipartisan Senate Budget Committee**: Collaborated to produce a report criticizing private equity ownership in hospitals, calling for reforms to ensure accountability. - **Leeds Equity Partners and OffSec**: Leeds Equity Partners acquired OffSec to create a healthcare education and licensure platform. - **Comvest Private Equity and Riccobene Associates**: Comvest announced a majority investment in Riccobene Associates Family Dentistry, focusing on expanding dental services and operational efficiency. - **CVS Health and Aetna**: Leadership changes at CVS Health aim to improve Aetna's performance, indicating a strategic partnership within the healthcare sector. - **American Hospital Association and American Medical Association**: Signed a letter supporting initiatives to address racism and inequities in healthcare. - **CINC Systems and ONR Applications Inc.**: CINC Systems, backed by Hg Capital, acquired ONR to enhance resident engagement and community services. ### Innovations, Trends, and Initiatives - **Private Equity Investment Surge**: Private equity investment in healthcare has surged, with approximately $1 trillion spent on around 8,000 deals over the past two decades. - **Private Equity Acquisitions**: A significant rise in private equity ownership of hospice centers and outpatient care facilities, indicating a trend towards for-profit healthcare. - **Investment Trends**: Private equity investments in healthcare have surged, with a notable increase in acquisitions of physician practices and outpatient care facilities. - **Focus on Technology**: Private equity is shifting towards investments in health IT and outpatient care delivery, seen as sectors with long-term demand. - **Private Equity Investment Projections**: Investment in healthcare is projected to increase in 2025, focusing on healthcare IT and administrative support services. - **Healthcare IT Focus**: Private equity is increasingly targeting healthcare information technology due to regulatory scrutiny on healthcare providers. - **Healthcare IT Mergers and Acquisitions**: An increase in private equity acquisitions in healthcare IT is anticipated, driven by the growing volume of healthcare data. - **Health Over Wealth Act**: Proposed legislation aimed at limiting private equity investments in patient-facing healthcare providers, emphasizing transparency and accountability. - **Massachusetts Health Policy Commission Initiatives**: Advocating for policy changes to enhance transparency in private equity transactions in healthcare. - **Health over Wealth Act**: A proposal to enhance transparency in private equity-owned healthcare entities by requiring financial disclosures. - **Emerging Markets Investment**: Private equity firms are increasingly targeting emerging markets for high returns, focusing on sectors like healthcare and technology. - **Corporate Crimes Against Health Care Act**: Proposed legislation aimed at holding private equity executives accountable for harmful practices in healthcare. - **Rising Acquisitions in Outpatient Care**: Notable increase in private equity acquisitions of outpatient cardiology practices, particularly in affluent areas, potentially diverting resources from underserved communities. - **Increased Transparency Initiatives**: The Biden administration and various lawmakers are pushing for greater transparency in healthcare transactions to monitor private equity's influence. - **Cardiology Acquisitions**: Nearly 50% of private cardiology practices are part of private equity portfolios, with significant acquisitions occurring since 2021. - **Direct Employment of Physicians**: Health systems are increasingly hiring specialists from private equity-backed companies to reduce costs and address staffing shortages. - **Legislative Initiatives**: The Health Over Wealth Act aims to enhance transparency and accountability for private equity firms in healthcare, mandating disclosures on debt and executive compensation. - **California Assembly Bill 3129**: Aimed to enhance oversight of private equity investments in healthcare but was vetoed, reflecting ongoing regulatory challenges. - **Technology-Driven Solutions**: Recent investments highlight a shift towards technology-driven healthcare solutions, such as Resurgens Technology Partners' investment in Movemedical. ### Challenges and Concerns - **Regulatory Scrutiny**: Private equity investments in healthcare are facing increased regulatory scrutiny, leading to a decline in deals. - **Market Dominance and Financial Stripping**: Private equity firms manage a significant portion of emergency rooms, raising concerns about market dominance and the financial stripping of healthcare assets. - **Short-Term Profit Focus**: Critics argue that private equity prioritizes short-term profits over long-term patient care needs, leading to potential negative impacts on healthcare quality. - **Financial Risks**: Private equity-backed healthcare organizations have faced significant bankruptcies, raising concerns about the sustainability of their business models. - **Impact on Patient Care**: Concerns that private equity's profit-driven focus may compromise the quality of patient care, leading to increased costs without improvements in clinical outcomes. - **Patient Safety**: There are rising concerns about hospital-acquired conditions and overall patient safety in facilities owned by private equity firms. - **Negative Perception Among Physicians**: Over 60% of physicians view private equity's involvement in healthcare negatively, indicating widespread concern within the medical community. - **Patient Care Decline**: Investigations reveal that patient care often deteriorates following private equity acquisitions of hospitals. - **Quality of Care**: Research indicates that hospitals acquired by private equity firms often experience reduced staffing and increased prices, leading to poorer patient outcomes. - **Regulatory Oversight Needs**: There is a growing call for increased regulatory oversight to address the negative effects of private equity in healthcare, including potential bankruptcies linked to private equity ownership. - **Quality of Care Decline**: Investigations reveal that private equity ownership often leads to lower quality of care, chronic understaffing, and increased costs for patients. - **Bankruptcy Risks**: The collapse of Steward Health Care has raised concerns about the risks associated with private equity investments in healthcare. - **Profit-Driven Management**: Critics argue that private equity firms prioritize profits over patient care, negatively impacting hospital operations and leading to inadequate staffing. - **Bankruptcies of PE-backed Companies**: High-profile bankruptcies, such as Steward Health Care and Prospect Medical, raise concerns about the sustainability of PE investments in healthcare. - **Declining Patient Care Experiences**: Studies indicate that patient care experiences deteriorate post-private equity acquisitions, leading to concerns about responsiveness and overall care quality. - **Legislative Oversight**: California lawmakers are considering additional oversight for private equity firms acquiring healthcare facilities, reflecting growing concerns about their impact. ## Related Topics [[Venture Capital in Healthcare]]