Disruptive Healthcare 4/19/2024: Is M&A Bad For Healthcare?
disruptivehealthcare.substack.com
Disruptive healthcare valuation, trends and analysis weekly. Is M&A a Bad Thing in Healthcare? The Wall Street Journal reported that over a dozen states have passed laws to require corporate buyers, such as private equity, to notify states of planned healthcare acquisitions. The legislation is part of a political backlash against corporate consolidation in healthcare. The Physician Advocacy Institute published a report showing that three in five physician practices are now owned by nonphysicians. In early 2020, corporations owned ~17% of US medical practices while hospitals and health systems owned ~25%. The Private Equity Stakeholder Project reported that private equity backed firms accounted for 21% of healthcare company bankruptcies in 2023. Venture-capital backed companies comprised 15% of healthcare company bankruptcies in 2023.
Disruptive Healthcare 4/19/2024: Is M&A Bad For Healthcare?
Disruptive Healthcare 4/19/2024: Is M&A Bad…
Disruptive Healthcare 4/19/2024: Is M&A Bad For Healthcare?
Disruptive healthcare valuation, trends and analysis weekly. Is M&A a Bad Thing in Healthcare? The Wall Street Journal reported that over a dozen states have passed laws to require corporate buyers, such as private equity, to notify states of planned healthcare acquisitions. The legislation is part of a political backlash against corporate consolidation in healthcare. The Physician Advocacy Institute published a report showing that three in five physician practices are now owned by nonphysicians. In early 2020, corporations owned ~17% of US medical practices while hospitals and health systems owned ~25%. The Private Equity Stakeholder Project reported that private equity backed firms accounted for 21% of healthcare company bankruptcies in 2023. Venture-capital backed companies comprised 15% of healthcare company bankruptcies in 2023.