1. A Harvard University study published in JAMA found that private equity ownership of medical groups was likely linked to higher rates of physician turnover.
2. California became the seventh state to introduce a bill that would increase scrutiny over private equity transactions in healthcare after Gov. Gavin Newsom vetoed a similar bill in 2024. Indiana, Connecticut, Oregon, Vermont, New Mexico and New York are also considering legislation that would increase regulation over private equity deals in healthcare.
3. While private equity activity in healthcare has been high over the last several years, a more recent rise in bankruptcies and defaults points to a possible rough patch for healthcare PE investments. According to The Wall Street Journal, debt defaults and bankruptcy filings by physician groups and other healthcare organizations have more than doubled each year since 2022. PE-owned healthcare providers also represent the majority of bigger companies with assets over $100 million that filed for bankruptcy or defaulted during that same period.
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