Pri­vate equi­ty in health­care is here to stay

Private equity in healthcare is here to stay

Paul Keck­ley, author of the high­ly respect­ed health­care-focused The Keck­ley Report, recent­ly asked in his week­ly col­umn whether pri­vate equi­ty is the solu­tion or the prob­lem in health­care.
It may well be a com­bi­na­tion of both. But one thing for sure is that pri­vate equi­ty is very like­ly to remain a sig­nif­i­cant pres­ence in U.S. health­care and could become even more ubiq­ui­tous as investors look to new tech­nol­o­gy, includ­ing arti­fi­cial intel­li­gence, to aid in patient needs at the same time as boost­ing their returns.
First, though, some of the not-so-good side of pri­vate equi­ty in health­care.
Pri­vate equi­ty play­ers can have a rep­u­ta­tion for decreas­ing the qual­i­ty of care and patient safe­ty at the same time as increas­ing costs. Peer-reviewed stud­ies, as well as indus­try-spon­sored ones, have con­sis­tent­ly estab­lished such a causal relat …