Over the course of the past year, elected officials, regulators, and other stakeholders have expressed heightened interest and focus on private equity investment in healthcare, write attorneys with Frier Levitt.
With such increased awareness in the media, coupled with primarily negative opinions from elected officials, investors can expect that downstream regulators, including enforcement agencies and prosecutors, will more closely scrutinize the activities of private equity firms and their portfolio of healthcare companies.
For example, earlier this year, a Congressional subcommittee held a hearing concerning the role of private equity in healthcare, primarily in the context of investment in nursing homes. The witnesses who spoke, none of whom represented the interests of investors, were almost universally negative in their treatment of the matter. The speakers claimed that private equity investments in healthcare, as a result of the desire to increase profits, result in increased costs and poorer patient outcomes. Read more.
