Private Equity in Healthcare – PESP’s November 2023 Roundup
December 1, 2023
Each month, PESP’s Healthcare Team will be putting together a roundup of 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
Ban on Surprise Medical Bills Pushes More Health Bonds to Brink – Bloomberg
- After the No Surprises Act (a federal law to curb surprise medical bills in the US) triggered a handful of the year’s biggest bankruptcies, Bloomberg reports that “investors are eyeing corporate-debt piles for potential pain ahead.” KKR’s Global Medical Response, Blackstone’s TeamHealth, and Whistler Capital’s Radiology Partners are among the companies with hefty payments coming due.
3 adult day cares in southern New Hampshire closing, leaving families scrambling to find options – WMUR
- Three PE-owned adult day cares in New Hampshire are closing, and family members with loved ones who make use of the services say the closures are leaving them in a financial bind. The centers are owned by Sevita, which is owned by Centerbridge Partners and Vistria Group.
- For more information about how PE ownership of Sevita has impact services for people with disabilities, see our report: The Kids Are Not Alright: How Private Equity Profits Off of Behavioral Health Services for Vulnerable and At-Risk Youth
CMS finalizes transparency rule targeting REITs, private equity owners – McKnight’s
- The Centers for Medicare & Medicaid Service (CMS) issued a new rule today that requires nursing homes to report more details about their ownership structure and type, including whether they are PE-owned. In a fact sheet on the rule published this morning, CMS officials said the agency had become “increasingly concerned about the quality of care at nursing homes, especially those owned by private equity companies and other types of investment firms.”
Private equity-backed Texas company seeks to reopen behavioral health beds in Jackson– Mississippi Today
- Behavioral health company Oceans Healthcare, which is owned by Webster Equity Partners, is seeking to reopen St. Dominic Memorial Hospital’s psychiatric unit in Jackson, MS. PESP’s Eileen O’Grady is cited: “O’Grady said while it’s generally a good thing that more behavioral health beds could open in Jackson, she is wary of any private-equity owned organization getting involved in behavioral health care.”
Private equity raises bets on Botox-dealing medspas – Pitchbook
- Private equity interest in the delivery of Botox injections, laser hair removal and specialized facials across the US is growing rapidly as the medspa industry matures and investors recognize those services have become habits for many consumers.
FTC Chief Gears Up for a Showdown With Private Equity – KFF Health News
- Federal Trade Commission Chair Lina Khan confirmed in an interview that her agency wants to send a message with its suit against U.S. Anesthesia Partners and its PE owner, Welsh, Carson, Anderson & Stowe. According to Khan, Welsh Carson and USAP “bought up the largest anesthesiology practices, then jacked up prices and entered into price-setting and market-allocation schemes. This action puts the market on notice that we will scrutinize roll-up schemes.”
Healthcare team’s latest blogs, reports, and media mentions
- A new report by PESP and our partner, the National Disability Rights Network, details how private equity’s stranglehold on medical equipment industry hurts people with disabilities.
- See coverage of the report in Healthcare Brew: Private equity firms are buying up medical equipment suppliers, and it’s leading to patient harm, report says
Blog Posts:
- Private Equity Healthcare Acquisitions – October 2023
- Prospect safety net hospitals continue to struggle under the legacy of Leonard Green’s past ownership
- Biden administration announces transparency rule for private equity-owned nursing homes
