Thank you for Subscribing to Healthcare Business Review Weekly Brief
Investment in healthcare has been especially strong, with notable growth in investments in medical technology.
FREMONT, CA: Private equity poured into the healthcare industry at a record rate. Increased caution prevails among investors, and the investment is an important development for financing healthcare and the sector's ownership. Many people favor private equity firms' push in healthcare, claiming that the surge in investment will improve management and operations.
Others see the entry of profit-seeking enterprises as pushing up healthcare costs and fragmenting an already fragmented healthcare system, particularly in the US.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Maximizing return: Some people do not believe private equity is a boon for the healthcare industry. Investors in private equity are making money, and the companies they invest in are ones they believe will provide them with a significant return on investment. To maximize returns, private equity firms aim to increase healthcare costs. They often want to cut costs by reducing staff, consolidating services, or narrowing networks. These actions can increase patient costs and reduce the quality of care they receive, which can ultimately impede the industry's progress.
Surprise billing is common among private equity-backed staffing firms, which drives up healthcare costs. Surprise billing occurs when patients are billed by out-of-network providers even though they were seen in-network.
More in News