Private Equity in Healthcare – PESP’s June 2025 Roundup

Each month, PESP’s Healthcare Team will be putting together a roundup that shares the latest news stories related to private equity in healthcare and highlights the work that our team has published in the last month.

In the news

Bill enacting nation’s strictest limits on corporate health care influence signed by Oregon governor – Oregon Capital Chronicle

• The legislation would close what supporters say is a loophole in state law, which mandates that doctors hold at least a 51% stake in most medical practices, but which companies have taken advantage of by employing their own doctors — sometimes from out of state — and putting them down on paper as clinic owners.
• Several state-level proposals have gained traction this year targeting private equity’s role in healthcare, according to Pluribus News, citing PESP analysis finding 50 active bills in nine states.
• In Connecticut, the 2025 legislative session ended in the first week of June without the passage of any legislation related to private equity ownership of health care facilities, according to CT Mirror, despite two competing bills which each laid out an approach for protecting the state’s health care system from potential bad actors.

What Happens When Private Equity Comes to Your Town’s Hospital – More Perfect Union

• PESP Healthcare Director Mary Bugbee was interviewed by More Perfect Union to discuss the closure of Crozer Health in Pennsylvania.
• Crozer’s parent company, Prospect Medical Holdings, filed for bankruptcy in January 2025. Prospect was majority-owned by private equity firm Leonard Green & Partners from 2010 to 2021.
• Crozer Health’s closure has resulted in layoffs for approximately 2,651 workers.
• Following the closure of Crozer Health, state lawmakers have moved to regulate private equity deals in healthcare but face hurdles in the state Senate, according to WHYY. Attempts in Pennsylvania to pass similar oversight laws in previous years have not been successful.
• Last month, Mary Bugbee, Healthcare Director at PESP, presented to the Delaware County Council about the devastating impact of private equity business practices on the Crozer Health system.

PESP presents at National Disability Rights Network annual convening

• In June, Eileen O’Grady, Director of Programs at PESP, spoke to the National Disability Rights Network (NDRN) during its virtual conference about the growing role of private equity firms in home and community-based services (HCBS) for people with an IDD.
• Drawing from a recent report from PESP called Private Equity in Intellectual and Developmental Disability Services, Eileen and her co-presenter, NDRN’s Cory Bernstein, offered a look at how this extractive business model is negatively impacting care for countless Americans.
• Eileen and Cory urged advocates to scrutinize private equity ownership, push for stronger oversight, and develop both individual and systemic advocacy strategies to hold these companies accountable. They also emphasized the urgent need for transparency and regulation to ensure that financial interests do not overshadow the rights and well-being of people with an IDD.

Healthcare team’s latest blogs, reports, and media mentions

Blog Posts:

• PESP’s Mary Bugbee Presents at “Risky Business: Profitizing Home Care” Webinar
• Top resources on Prospect Medical and Leonard Green & Partners
• “Legal Theft”: PESP breaks down private equity’s role in Crozer’s collapse at a Delaware County, PA Council meeting
• PESP featured in a Fault Lines documentary highlighting private equity’s impact on hospitals and patient care
• PESP presents at National Disability Rights Network annual convening
• Private Equity Health Care Acquisitions – May 2025

Other PESP healthcare news and mentions:

• Axios cited a PESP report detailing abuse and neglect of IDD patients under the care of private equity sponsor-backed providers.
• The PE Hospital Tracker was cited in MindSite News.