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March 27, 2024
Is Private Equity the Solution or the Problem in Healthcare? - Paul Keckley
Summary
The Keckley Report examines the controversial role of private equity (PE) in healthcare, highlighting the growing scrutiny from the government and public over concerns that PE investment compromises patient safety and increases consumer costs. The FTC, DOJ, and HHS announced an investigation into PE's influence in healthcare, amidst U.S. Senate inquiries and public outcry over affordability and accountability issues. Despite criticism, PE plays a significant role in healthcare, owning a notable portion of hospitals, medical practices, and nursing homes. The report details the impact of PE ownership on healthcare, including decreased quality and patient safety, and increased prices and worker discontent, but acknowledges the substantial influence PE has in shaping healthcare policy through lobbying. It discusses the resiliency of healthcare as a target for PE investment, driven by technology-enabled services and AI solutions, despite regulatory challenges and market downturns. The report concludes that while PE investment is unlikely to be displaced, there is a pressing need for regulatory reform to ensure a level playing field that addresses concerns over patient safety and affordability.
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