The Curious Case of Private Equity in Health Care’s Market Failures (ProMarket)

Despite heightened federal and state scrutiny, policy responses to private equity (PE) in healthcare remain limited. The authors argue that while PE ownership has undeniably surged across hospitals, physician practices, and outpatient services—often leading to higher prices and concerns about quality—there’s a gap between political outrage and concrete regulatory action. Authors Barak Richman and Richard Scheffler urge a shift from generalized blame to targeted policy grounded in a deeper understanding of PE’s organizational strategies. They call for evidence-based regulation that distinguishes harmful behaviors from the structure of ownership, warning that outrage alone won’t fix systemic vulnerabilities in healthcare markets.