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Private Equity in Healthcare – PESP’s May 2024 Roundup

June 3, 2024

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

Steward Health Care bankruptcy puts Cerberus Capital and MPT in the spotlight

States strengthen defense against private equity healthcare dealsModern Healthcare

  • Modern Healthcare reports on the growing number of sates considering legislation that reins in private equity in healthcare, including Massachusetts, Rhode Island, California, and Indiana.
  • “Over the past two years, more than a dozen states have passed laws bolstering healthcare merger and acquisition notification and financial disclosure requirements, in some cases requiring clearance from state attorneys general when corporate investors are involved. New legislation is poised to further limit healthcare mergers and acquisitions, particularly smaller deals that fall outside of the Federal Trade Commission’s review process.”

New study examines scope of private equity investment in behavioral health

  • A new study published in JAMA Psychiatry examines the breadth and geographic presence of private equity in mental health and addiction treatment.
  • The study found “642 mental health clinics and 1,152 clinics treating substance use disorders that had undergone private equity acquisition over that period, as of last year, constituting 6.2% of all mental health facilities and 7.1% of addiction treatment facilities nationwide. In Colorado, Texas and North Carolina, the proportion of private equity-owned practices accounted for roughly a quarter of all facilities providing mental health treatment.”
  • The study’s lead author Jane Zhu, M.D. said in an interview: “Private equity ownership of outpatient behavioral health clinics is very, very high in some states. Given those high rates of penetration, it points to behavioral health as an area that needs attention from policymakers.”

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

Blog Posts:

Other Media Mentions:

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