"Private Equity's Hidden Hand in Healthcare: Watchdog Group Sounds Alarm on Non-Profit Deals A new report from the Private Equity Stakeholder Project (PESP) has shed light on a growing trend of joint ventures between private equity firms and non-profit healthcare providers, sparking concerns about the potential risks to patients, payers, and employees. The watchdog group has identified over 500 such deals, ranging from rural hospitals to major health systems and hospice care providers, and warns that these arrangements could lead to the extraction of profits at the expense of quality care. As the healthcare industry continues to grapple with issues of affordability and accessibility, the PESP's findings raise important questions about the role of private equity in shaping the sector's future. With the group calling for greater government oversight, lawmakers are now under pressure to investigate the implications of these deals and ensure that the interests of patients and communities are protected."
New report details slew of ventures between private equity and nonprofits and calls for greater government oversight A watchdog group is calling for greater government oversight of joint ventures between private equity firms and non-profit healthcare providers, arguing that the arrangements could present “risks” to “patients, payers and employees”.In a new report, Private Equity Stakeholder Project (PESP), a vocal critic of the industry, detailed more than 500 joint ventures between private equity and nonprofit healthcare providers – ranging from rural hospitals to major religiously affiliated health systems to hospice care providers. The group argued those risks could include extraction of profit and a decline in quality of care. Continue reading...
