The Dose How Private Equity Deals Are Reshaping Your Health Care
May 2, 2025
Dr. Zirui Song, a general internist at Massachusetts General Hospital and Harvard Medical School professor, dives into the impact of private equity on health care. He explains how these firms profit by cherry-picking patients and cutting staff, leading to increased complications post-acquisition. Dr. Song discusses the rise of outpatient specialties and the effects of new laws aimed at increasing transparency. With a focus on protecting patient care, he highlights the challenges and future of financial oversight in health care.
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Private Equity Deals Are Not Monolithic
- Private equity deals in health care vary widely in structure and effects, so one-size conclusions are misleading.
- Key differences include debt placement, management control, and hidden deal terms that impact operations and patient care.
Require Transparency In PE Healthcare Deals
- States should give agencies authority to request financial and transaction documents for PE healthcare deals.
- Collect these documents longitudinally to reveal debt terms, ownership, and recapitalizations that affect care.
Debt-Loaded Acquisitions Raise Operational Risk
- PE often finances acquisitions with large debt placed on the acquired entity, increasing financial pressure on providers.
- To boost returns firms may cut labor, raise prices, or increase service volume, which affects care and access.