A joint report from the Federal Trade Commission (FTC), Department of Justice (DOJ), and Department of Health and Human Services (HHS) highlights the “new and unique risks” posed by private equity (PE) in healthcare, including rising costs, staffing cuts, and diminished care quality. After a year-long investigation, which included analyzing over 2,000 stakeholder comments, the report identifies PE-backed consolidation through “roll-ups” as a major concern, with firms acquiring smaller entities to avoid regulatory thresholds. The agencies cited examples of PE’s growing footprint in emergency rooms and mental health facilities and noted that PE-backed healthcare firms represented 21% of bankruptcies in 2023.
FTC, DOJ and HHS release report warning of private equity consolidation in healthcare (HealthExec)
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