Money for Nothing: How private equity has defrauded government health programs
February 22, 2021
The health care industry has increasingly been a target for private equity investment.
This is despite the fact that private equity investment in health care companies carries substantial risk to patients, workers, and investors. Firms typically take controlling ownership stakes, multiple, if not a majority, of board seats at acquired companies, and substantially influence the health care company’s operations and growth strategy. The typical private equity investment playbook—pursuing outsized returns over short time horizons while using high levels of debt—may lead behavior that jeopardizes patient care.
