Investments in healthcare by private equity firms are on the rise, which creates several issues for CFOs, reports Health Leaders Media.
Such investments generally involve an equity firm purchasing all or some of the ownership of a hospital or healthcare system. Supporters of these investments say they can lead to greater innovation and more streamlined delivery of care. Critics argue that such investments potentially result in the closing of healthcare facilities, loss of jobs, and reduction in services.
It has been well publicized that mergers and acquisitions continue at a brisk pace in the healthcare industry. Typically, these actions involve a larger hospital or healthcare system absorbing smaller or struggling organizations, or systems merging to share complementary healthcare services for mutual benefit.
Also on the rise are investments in hospitals and healthcare systems by private equity firms. Supporters of such investments generally argue that they can increase innovation in the recipient hospital. Critics of the practice generally say it threatens the quality of care provided by those hospitals. Read more.
