Hospital Management’s Post

Private equity and healthcare: a bitter pill to swallow? - Carmela Mendoza from Private Equity International looks at the US market where private equity have invested in the sector. Whilst there have been some outstanding successes creating value AND delivering better care (United Surgical Partners International, Inc / Welsh, Carson, Anderson & Stowe, HCA Healthcare / KKR), there have also been challenges (HCR ManorCare, Steward Health Care) Henry Elphick, Deputy Chair European Healthcare Investor Association (E.H.I.A.) is quoted explaining the higher levels of regulation in Europe align the interests of investors with good clinical outcomes more explicitly as the two are interlinked - good care means more patients means good business (and returns). For example, the Care Quality Commission data in the UK show higher occupancy, fees and profitability for services rated "good" or "outstanding". #healthcare #privateequity Hannah Zhang

Unlike many other professional services, GP Practices need partnership agreements that outline circumstances specific to their industry, such as the GMS regulations, superannuation, and more. In this article, Healthcare experts Lisa Kitson and Nathan Adam share what you should consider when looking over your GP partnership agreement and what terms should specifically be included. Follow the link to learn more: https://lnkd.in/eCShAzJx #healthcare #partnerships #lawyersforbusiness

💡 Private Equity’s Impact on Texas Healthcare 💡 Private equity firms are buying up healthcare providers, but at what cost? Texans deserve quality care, not cost-cutting measures that put profits over patients. 📢 Read more: https://lnkd.in/gqkcWbGe #txlege

PE investors in healthcare, heads up. Keep an eye out for tonight's SOTU. DOJ, FTC, and HHS have recently announced a robust effort to step up False Claims Act enforcement, directed at PE funds with healthcare portfolio companies, while a new federal task force has been launched to re-examine PE investors' perceived influence over rising healthcare costs. In addition, more than 5,000 physicians have just announced the formation of the Coalition for Patient-Centered Care to oppose private equity’s expanding footprint in healthcare. More to come . . . as early as tonight. #healthcareinvesting #PEinvestors #SOTU

Private Equity Beware: Deal “Approvals” and Other Risks Loom Under Proposed California Legislation Great article from my former partners on the new California bill, Assembly Bill 3129, which would, beginning in 2025, require 90 day advanced notice to the Attorney General for approval on changes in control and acquisitions of health facilities and providers by PE firms and hedge funds. The AG could deny “approval” outright or impose “conditions” on an approval. The permitted basis for action is not merely an “anticompetitive effect”, but any “significant effect on the access or availability” of health care services. Such “effects” could include any impact relating to “prices, quality, choice, accessibility, and availability” at the “local”, the “regional” or “state” levels. In other words, a flexible standard that would give the AG significant ability to step in and scuttle deals. Beyond that, the bill would prevent PE and hedge funds from controlling aspects of physician or psychiatric practices and limit their ability to manage them as well, under certain fee arrangements. Rate setting, and admissions or referral policies could not be determined by PEs and hedge funds under the bill. So, even where a deal was “apprived” PEs and hedge funds would be significantly limited in the levers of control and the means of management they could deploy on assets. Clearly building off of the recent (and controversial) study purporting to find quality of care impacts based on PE ownership of hospitals and the fight over the Steward Hospital System’s troubles in Massachusetts, this bill, if passed, would put a sharp sword in the state AG’s hands. Passage in CA would risk adoption elsewhere. Public policy risks for PEs and hedge funds is clearly increasing.

Much has been made of the “private equity is ruining the U.S. healthcare system” rhetoric. In fact, I was with a fellow CEO last week discussing the impact of #pe on our industry. "They will ruin the #professionalservices industry just like they did with healthcare" was a statement made. I have not personally been close enough to the impact of private equity on the healthcare industry to have a strong opinion, but PitchBook has just published some interesting data on this impact. We are still in early days of being able to evaluate the impact of PE on our industry, but I am bullish. I am certain Pitchbook will have many reports on the PE and #businessservices over the coming years. #privateequity #healthcare #pitchbook #officeofthecfo #deals

Private equity (PE) investment in healthcare continues to grow, drawing increased scrutiny from regulatory bodies. A new CMS rule effective January 2024 mandates expanded disclosure for nursing facilities, aiming for transparency in PE-backed healthcare entities. With PE in the healthcare spotlight, firms face heightened federal and state oversight but opportunities remain. Navigating this landscape requires adaptability and awareness of evolving regulatory demands. #HealthcareInvestment #PrivateEquity #RegulatoryCompliance"

On February 22, 2024, the Minnesota legislature introduced a bill (SF-4392 and companion bill HR-4206) which seeks to curb the control and acquisition over certain healthcare providers by private equity companies and real estate investment trusts (REITs). If enacted, the bill would prohibit private equity companies and REITs from acquiring or increasing any operational or financial control over, or ownership interest in, certain health care providers. This moratorium would be effective August 1, 2024. Read our full alert here: https://bit.ly/43T5ORH #LegalAlert #HealthcareTransactions #PrivateEquity

Check out the new article by PESP Healthcare Director Mary Bugbee in this edition of the AFT Healthcare Journal. All about how private equity firms are pillaging hospitals and exploiting healthcare workers. https://lnkd.in/gJmYfwEH

"Hopes to rein in private equity investment in healthcare died in California last weekend." Patient care is more than a process; it is a profound human connection built on trust. Dr. Zirui Song, a healthcare policy professor at Harvard University and a general practitioner at Massachusetts General Hospital, highlights this essential aspect of healthcare. #PatientCare #HealthcarePolicy #HumanConnection #PrivateEquity