On Nov. 22, the Private Equity Stakeholder Project released a statement expressing concerns over Marc Rowan, CEO of Apollo Global Management and a top contender as President-elect Donald Trump's pick for Secretary of the Treasury.
While still unconfirmed, Mr. Rowan's position as CEO of AGM and the company's extensive hospital footprint could foreshadow an incoming administration that is more supportive of PE in the healthcare space than its predecessor.
Here are eight other things to know about what a Trump presidency will mean for PE in healthcare:
1. Mr. Rowan's position as CEO of AGM has been marked by a series of "bullish" healthcare acquisitions, according to PESP. AGM owns 220 hospitals across 36 states, as well as two of the country's largest hospital groups — Brentwood, Tenn.-based Lifepoint Health and Louisville, Ky.-based ScionHealth.
2. A recent analysis published by Private Equity International predicts that, while healthcare is likely to remain fairly regulated by both the Treasury and the FTC, a Trump administration could "spur dealmaking activity."
3. Under Mr. Trump, it is unlikely that the FTC will maintain the same positions undertaken by Mr. Biden. According to Bloomberg Law.
4. It is likely that Mr. Trump will also appoint a new FTC chair after he takes office. The current chair, Lina Khan, worked closely with Mr. Biden's anti-trust agenda over his time in office. Assuming Ms. Khan steps down, as expected, the commission will then be headed by two Democratic and two Republican commissioners until a fifth member is confirmed, according to Quartz.
5. Other analysis suggests a more mixed reception of the new administration by healthcare investors. According to CNBC, investors may benefit from Mr. Trump's generally pro-deregulation stances, while publicly traded companies may be affected by possibly lower numbers of Medicaid patients and other healthcare policies proposed by the president-elect.
6. "There’s a real dichotomy here," David Weinstein, a portfolio manager and senior vice president at Dana Investment Advisors told CNBC. "Where do we end up? Maybe where we are right now."
7. Mr. Trump has previously supported dismantling parts of the Dodd Frank Act, according to CNBC, which was passed after the 2008 financial crisis to increase oversight of financial institutions. He aims to deregulate the finance industry by reducing compliance costs for banks.
8. Mr. Trump has pledged to make the tax cuts from his first term permanent, including a lower corporate tax rate, according to CBS News.