Members of Congress introduce bill to halt private equity ‘looting’ of healthcare entities (Radiology Business)

Aiming to halt the financial tactics of private equity (PE) firms in healthcare, Sen. Elizabeth Warren and other lawmakers reintroduced the Stop Wall Street Looting Act. The bill seeks to close regulatory loopholes and end the incentives that allow PE firms to accumulate profits at the expense of communities, workers, and businesses.
The lawmakers referenced Cerberus Capital Management’s acquisition of hospitals as a prime example, where facilities were burdened with debt while the firm profited, leaving essential community services in disrepair. “Private equity takeovers are legal looting,” Warren said, arguing the bill will prevent future cases like the Steward Health Care collapse.