Health Law Highlights

Tame The Private Equity Beast By Shifting Its Focus To Value-Based Care

Summary of article from Health Affairs, by Ken Terry:

The influence of private equity (PE) firms on the healthcare industry has lead to several concerns, including reduced quality of patient care, increased expenses, and potential economic instability. However, PE firms could also play a constructive role in healthcare reform if their investments were directed towards helping entities transition to value-based care (VBC). Tax incentives could motivate PE investments in VBC-oriented entities (VOEs). Policy changes, such as extending holding periods for health assets, creating escrow accounts for failed strategies, and establishing joint liability between PE firms and their owned companies, could motivate PE firms to focus on primary care and reduce healthcare waste.