Here are five key notes on the presence of private equity in healthcare.
1. About one-fifth of healthcare bankruptcies last year were private equity-backed companies. According to a report from the Private Equity Stakeholder Project, they accounted for more than 20% of healthcare bankruptcies in 2023.
2. U.S. lawmakers eye tightening regulations for healthcare private equity firms. Sens. Elizabeth Warren and Ed Markey of Massachusetts introduced a bill that would address the rise in private equity control of health facilities through penalties, stricter reporting requirements and other payment regulations.
Additionally, California lawmakers floated a bill in April that would provide oversight for private equity companies attempting to purchase healthcare facilities, requiring private equity firms and hedge funds to provide written notice before purchasing a healthcare facility or provider group, which would then need attorney general approval.
3. Private equity fund assets in healthcare hit $8.2 trillion in 2023, according to Sens. Warren and Markey.
4. The number of healthcare private equity transactions fell by approximately 16.2% in 2023 compared with 2022.
5 .Sixty-eight percent of ASCs are independently owned. The remaining 32% are owned by ASC management groups and other healthcare operators.
