Recent policy and regulatory initiatives to address private equity’s negative impacts in healthcare

The Private Equity Stakeholder Project released a comprehensive report detailing the legislative and regulatory actions taken across the United States in response to the growing evidence of private equity’s detrimental impact on healthcare systems. From federal agencies to state legislatures, policymakers and regulators are increasingly scrutinizing private equity’s role in rising healthcare costs, patient harms, and financial risks in the sector.

Recent policy and regulatory initiatives to address private equity’s negative impacts in healthcare

The goal of this report is to highlight and analyze recent developments involving the US policy and regulatory landscape around private equity in healthcare, as well as provide policy recommendations based on the Private Equity Stakeholder Project’s and other groups’ research.

In 2023 and 2024, multiple states proposed or passed new legislation enhancing oversight of healthcare acquisitions and mergers; two new bills were introduced at the federal level targeting private equity in healthcare; multiple federal agencies have tasked themselves with gathering robust information on the impacts of private equity in healthcare and the broader economy; and congressional committees have launched investigations and hosted hearings about private equity’s impacts in healthcare. State attorneys general working with the Department of Justice have also worked to hold private equity-owned healthcare companies accountable for Medicaid and Medicare fraud.

There have been significant positive developments in bringing greater transparency, oversight, and accountability to private equity in healthcare. However, the polarized political landscape has taken the prospect of winning strong, bipartisan legislation at the federal level off the table—at least for now. Additionally, many states, including ones that have been impacted by private equity’s abuses in their healthcare system, were unable to get meaningful state legislation across the finish line in their recent legislative sessions.

Download the full report PDF here.