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Private equity in healthcare linked to higher costs for payers and patients

by Gus Iversen, Editor in Chief | August 02, 2023
Business Affairs

The researchers hope the study will make healthcare providers, policymakers and members of the public more aware of the growing influence of the financial sector in the healthcare system. They believe their findings may spark greater policymaker discussion on antitrust regulation and corporate practice of medicine laws.

They also stress that the problem is not with private equity specifically, but something larger.

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“Private equity has been made to be a bogeyman,” said Bruch. “It certainly is an important financial actor growing in activity, and evidence suggests it should raise important concerns for patients, but it is a symptom of a health system that is becoming increasingly financialized.”

The team is continuing their research to examine the role of venture capital, management consultants, financial lenders and real estate investment trusts in healthcare.

The study, “Evaluating trends in private equity ownership and impacts on health outcomes, costs, and quality: systematic review,” was published in The BMJ earlier this month.

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