{"id":2256411,"date":"2024-05-31T06:47:01","date_gmt":"2024-05-31T10:47:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/private-equity-in-healthcare-is-here-to-stay\/"},"modified":"2024-05-31T06:54:16","modified_gmt":"2024-05-31T10:54:16","slug":"private-equity-in-healthcare-is-here-to-stay","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/private-equity-in-healthcare-is-here-to-stay\/","title":{"rendered":"Private equity&#8217;s presence in healthcare is a lasting trend"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fprivate-equity-in-healthcare-is-here-to-stay%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2256411&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Paul Keckley,\u2064 from\u200c The\u200d Keckley Report, debated if private equity is\u2062 healthcare&#8217;s solution or problem, likely being \u2064both. Private equity&#8217;s presence in U.S. \u2062healthcare is expected \u2063to grow, utilizing \u2063new technologies to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democratic-senator-warns-google-ai-in-healthcare-could-lead-to-erosion-of-trust-and-more-errors\/\" title=\"Democrat senator cautions against Google AI in healthcare, citing trust erosion and increased errors.\">enhance patient care<\/a> and returns. Concerns of decreased\u2063 care quality and rising costs\u200b prompt calls\u2062 for increased regulation to address industry issues and prevent healthcare deserts.\u2064 Paul Keckley, a prominent figure from The Keckley \u2063Report, has discussed the dual role of private equity in healthcare as both a solution and a \u200dproblem. The expansion of private \u200cequity in the U.S. healthcare sector is\u2062 anticipated, with a focus on leveraging new technologies to improve \u200cpatient\u200d care and\u200b financial returns. Rising concerns about diminished care quality and escalating costs emphasize the need for heightened regulation to tackle industry challenges and mitigate the emergence of healthcare deserts.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>Paul Keckley, author of the highly respected <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/healthcare\/\" target=\"_blank\" rel=\"noopener\" title>healthcare<\/a>-focused <em>The Keckley Report<\/em>, recently asked in his weekly column whether <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/2959347\/ftcs-regulatory-overreach-attacking-private-equity\/\" target=\"_blank\" rel=\"noopener\" title>private equity<\/a> is the <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/2926061\/lina-khan-opposes-private-investment-in-healthcare-shes-wrong\/\" target=\"_blank\" rel=\"noopener\" title>solution or the problem<\/a> in healthcare.<\/p>\n<p>It may well be a combination of both. But one thing for sure is that private equity is very likely to remain a significant presence in U.S. healthcare and could become even more ubiquitous as investors look to new <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/technology\/\" target=\"_blank\" rel=\"noopener\" title>technology<\/a>, including <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/artificial-intelligence\/\" target=\"_blank\" rel=\"noopener\" title>artificial intelligence<\/a>, to aid in patient needs at the same time as boosting their returns.<\/p>\n<p>First, though, some of the not-so-good side of private equity in healthcare.<\/p>\n<p>Private equity players can have a reputation for decreasing the quality of care and patient safety at the same time as increasing costs. Peer-reviewed studies, as well as industry-sponsored ones, have consistently established such a causal relationship.<\/p>\n<p>\u201cThis has been a source of debate and tension as to whether these entities lean on medical clinics to cut corners and provide bare-bone care to lower costs,\u201d Dr. Ronald Razmi, a former cardiologist and co-founder of Zoi Capital, which focuses on investing in AI healthcare tech solutions, said.<\/p>\n<p>Citing the <em>Journal of American Medicine<\/em>, Razmi added, \u201c[A] study published in JAMA in December 2023 indicates that the quality of care suffers after a hospital is acquired by a PE firm, presumably from the pressure to cut costs.\u201d<\/p>\n<p>In Pennsylvania, for example, lawmakers have pushed for legislation seeking to ban private equity groups, as well as other for-profit entities, from buying hospitals in a bid to curtail the rise of healthcare deserts in the state.<\/p>\n<p>Such a move came after private equity-owned Crozer Health closed two facilities in Pennsylvania, leading to what <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oregon-around-45000-students-return-to-classrooms-after-month-long-teacher-strike\/\" title=\"Around 45k students in Oregon are back in classrooms following a month-long teacher strike\">state legislators called<\/a> a \u201cmaternal care desert.\u201d<\/p>\n<h2>Regulation on the up and up<\/h2>\n<p>The solution to bad actors in the private equity space may be through increased regulation.<\/p>\n<p>Private equity may not welcome the spotlight. However, such increased regulation is likely to be a factor as the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-faces-opposition-to-new-vaccine-mandates\/\" title=\"Biden faces opposition to new vaccine mandates\">federal government steps<\/a> up its oversight of the healthcare industry as a whole and as private equity likely increases its presence.<\/p>\n<p>The Federal Trade Commission, for example, recently lost a case when a federal judge in Texas dismissed what would have been a landmark antitrust case against private equity group Welsh Carson Anderson &#038; Stowe.<\/p>\n<p>In that case, WCAS was alleged to have suppressed competition and driven up prices for anesthesiology services in the state through its U.S. Anesthesia Partners platform, something it owns a 23% stake in.<\/p>\n<p>The private equity landscape may be forgiven, therefore, for breathing a collective sigh of relief that such a landmark ruling fell this time in its favor. But it doesn\u2019t mean the scrutiny is going to go away, especially if there is poor behavior seen by both regulators and legislators.<\/p>\n<p>\u201cBad actors will be vilified by regulators and elected officials,\u201d Keckley said about firms\u2019 general partners who make investment decisions. \u201cMedia scrutiny of specific PE funds and their GPs will intensify as PE public reporting regulations commence.\u201d<\/p>\n<h2>Does the public care?<\/h2>\n<p>Patients generally are either oblivious to or choose not to inform themselves of who is running their local care facilities, Keckley adds. What matters to them is the affordability of such care.<\/p>\n<p>But, if corners are cut at the expense of patient safety, private equity groups could face increasing discontent from the general public on top of the growing scrutiny from regulators and legislators.<\/p>\n<p>\u201cTo the extent PE-backed solutions cherry-pick the system\u2019s low-hanging fruit at the expense of patient safety and affordability sans any regulatory restriction, they\u2019ll breed public discontent from those they choose to ignore,\u201d Keckley said.<\/p>\n<p>It would, therefore, behoove such private equity groups to operate their businesses in a socially responsible way. \u201cSome do it better than others,\u201d he said.<\/p>\n<h2>Lots of dry powder, where to invest?<\/h2>\n<p>Private equity has $2.49 trillion ready to invest, S&#038;P Global Market Intelligence Global reported in July 2023.\u00a0About 26% of its dry powder is more than four years old, waiting to be deployed, Keckley estimates.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>There appears to be little doubt that advances in technology, particularly through AI solutions, will continue to be of interest to private equity groups, furthering their lock on involvement in the healthcare sector.<\/p>\n<p>\u201cAI aims to advance healthcare systems, making operations more efficient and enhancing patient outcomes,\u201d Dr. Michael Everest, founder of Residents Medical, a\u00a0Los Angeles-based organization designed to help medical students find residency programs, said. \u201cThe likelihood of high returns on investments with technology like AI is the reason so many private equity firms are choosing healthcare.\u201d<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In his renowned healthcare-focused column, Paul Keckley questioned if private equity is healthcare&#8217;s solution or problem. It could be both. However, one certainty remains: private equity will likely endure as a major player in the U.S. healthcare landscape<\/p>\n","protected":false},"author":3127,"featured_media":2256412,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/05\/wb-business-private-equity-healthcare-nick-thomas-052924B6-1024x591.png","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2256411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/05\/wb-business-private-equity-healthcare-nick-thomas-052924B6-1024x591.png","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2256411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3127"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2256411"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2256411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2256412"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2256411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2256411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2256411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}