Behind the curtain on PE healthcare investment

Vastly expanded powers by the US health department means PE firms will need to provide greater transparency and accountability in how they run their healthcare businesses.

By Carmela Mendoza and Helen de Beer

Private equity’s relationship with healthcare service providers is an unusual one. Involvement in the sector has been growing at a steady pace, and yet the conversation around these transactions has largely been riddled with negativity.

This may in part be justified. Readers will be familiar with stories of PE firms taking over hospitals or care homes and having a detrimental effect on the quality of care at those facilities. In Private Equity International’s May Deep Dive, we found some alarming numbers to support this view. A 2021 study found that patients in PE-owned nursing homes faced a mortality rate 10 percent higher than that of non-PE-owned homes...

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