As private equity firms’ investment in the healthcare industry has grown exponentially over the last decade, government enforcement efforts targeting private equity investors have responded accordingly in recent years. Here’s what it means for private equity investors.
While that response is not unique to private equity—history indicates that enforcement efforts adapt to and follow private investment and government reimbursement dollars—it is nonetheless one that investors must consider carefully moving forward. Private equity investors must take steps to effectively manage their risk when entering and operating within the highly-regulated healthcare landscape.
Investors in the healthcare sector must especially be cognizant of the near-draconian penalties imposed by the False Claims Act (FCA) for submitting fraudulent claims for payment to the government. Read more.
