Summary of article from Ankura, by Anthony Metke, Robert Mundy:
Private equity (PE) investment in healthcare has grown substantially in the past decade due to the sector’s fragmentation, potential for scale, and attractive returns. However, this trend has raised concerns about the implications for patient care, costs, and industry structure. The Federal Trade Commission (FTC) and other regulatory bodies have recently increased their scrutiny of PE in healthcare, highlighting the potential risks of prioritizing profit over patient care. The future of PE investment in healthcare will likely involve a more cautious approach, with increased emphasis on regulatory compliance, transparency, and alignment with broader healthcare improvement goals. PE firms may need to adapt their investment strategies to a more long-term perspective, aligning with the goals of improving healthcare delivery and patient outcomes.