“Federal Agencies Investigate Private Equity’s Role in American Healthcare”

Federal agencies announce investigation into private equity’s impact on American healthcare

Ron Harman King, CEO of Vanguard Communications and healthcare marketing consultant, has weighed in on the recent announcement of a cross-government investigation into the role of private equity (PE) and other corporate firms in American healthcare. The investigation, jointly conducted by the Federal Trade Commission (FTC), the Department of Justice, and the Department of Health and Human Services, is aimed at examining the potential effects of corporate takeovers on quality care.

King argues that the investigation should not be limited to PE-owned health facilities and practices but should also include non-profit entities. He points to studies that have raised concerns about the corporatization of healthcare, citing links between private-equity investment and cost increases, as well as reports of compromised patient care and high mortality rates in facilities owned by corporate entities.

The rise of private-equity-backed roll-ups in healthcare has led to increased consolidation and near-monopolies in many metropolitan areas, where a single private-equity firm employs more than 30% of full-time-equivalent physicians. Additionally, King highlights the growing trend of healthcare professionals unionizing in response to deteriorating working conditions and concerns over patient care.

While some argue that PE ownership can lead to increased productivity and operational efficiencies, King emphasizes the need for a comprehensive investigation into the impact of corporate ownership on healthcare quality and access. He encourages healthcare professionals and patients to share their experiences and insights with the investigating agencies to help inform their inquiry.

As the investigation progresses, King urges stakeholders to consider the broader implications of corporate involvement in healthcare and to advocate for reforms that prioritize patient care and improve the overall health system. By engaging with the investigation process, healthcare professionals and patients have an opportunity to shape the future of healthcare delivery and ensure that quality care remains a top priority in an evolving healthcare landscape.