The Role of Private Equity in Health Care

This panel will examine the role that private equity (PE) companies play in the U.S. healthcare system. PE firms invested over $200 billion on healthcare acquisitions in 2021 alone. Where do taxpayer dollars spent on health care go when private equity owns the companies that provide care? Why is it that PE ownership accounted for at least 21% of health care company bankruptcies in 2023? The PE business model differs from the standard profit motive of companies that expect to profitably operate for the foreseeable future. PE firms plan to sell their acquired companies in just 3 to 7 years and employ various tactics to extract as much money as possible. One common PE tactic led to the downfall of the Steward Health Care hospital system in Massachusetts: selling off real estate to enrich PE fund managers while forcing hospitals to pay rent on the property they previously owned. Additionally, lack of transparency about PE and other financial interests behind health care companies makes it difficult for patients to make informed decisions about their care and for policymakers to address concerns about prices and quality of care. This panel will explore the dynamics of PE involvement in U.S. healthcare along with government policies meant to address key issues. Senator Warren will discuss her recently introduced legislation, the Corporate Crimes Against Health Care Act of 2024. This bill would hold corporate and PE executives accountable with civil and, potentially, criminal penalties. It would claw back ill-gotten gains that enrich such executives and enhance ownership transparency. U.S. Senator Elizabeth Warren is an honorary co-host of this panel discussion. Moderator: Brandon Novick | Center for Economic and Policy Research Remarks by: Senator Elizabeth Warren _______________ 00:00 Opening Remarks by Brandon Novick, CEPR 05:53 Senator Elizabeth Warren Remarks 13:51 Dr. Eileen Appelbaum, CEPR 35:05 Eileen O'Grady, PESP 52:19 Brandon Novick, CEPR 01:02:29 Q&A ______________ Co-Sponsors: Center for Economic and Policy Research, Private Equity Stakeholder Project, Americans for Financial Reform, United for Respect, Americans for Economic Liberties Project, and Open Market Institute

Added 21 Jul 2026