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Guardian
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New Water Commission must create an environmental enforcer that is feared
- An independent commission has been created to rectify the grossly inadequate regulation of water companies and their oversight.
- This new commission led by Sir Jon Cunliffe will focus on strengthening regulation, boosting investment and informing reform of the water sector.
- An enforcement body that is feared needs to be created to regulate the environmental aspect of the industry.
- The division of responsibilities between different industry regulators has not worked and a better whole-system regulator needs to be established.
- Water companies perform better on environmental reasons when listed on the stock exchange due to greater accountability and transparency.
- The settlement in 2004 was generous to water companies and led to an elevation of debt with limited enforcement of misconducts by Environment Agency.
- The new commission needs to prioritize the creation of an environmental enforcement body.
- Not-for-profit companies aren't the answer either, since Welsh Water has shown that environmental performance would not improve under such a company.
- The water industry needs to be prodded back to the stock market to improve financial performance, accountability, and transparency.
- The idea of nationalization of water companies has been ruled out as it doesn't offer a simple solution to the sector's problems.
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Hitconsultant
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Zombie Investments: The State of Private Equity in Healthcare
- Private equity (PE) firms are facing challenges in the healthcare services sector due to a confluence of factors including challenges recruiting and retaining physicians, reimbursement headwinds, accelerating labor costs and restrictive antitrust policies.
- Over the past decade, institutional capital poured into healthcare services and physician practice management companies.
- PE-backed physician platforms have found the variability in clinical practices and patient preferences across markets has limited the ability to achieve back-office efficiencies while accelerating labor costs and a challenging reimbursement environment have squeezed margins.
- Acquisition-driven growth strategies for PPMs have proven very risky, requiring high levels of leverage and added integration.
- As a result of several high-profile bankruptcies and a growing level of layoffs, clinic closures and service reductions caused by cash-strapped PE platforms, Lawmakers are increasingly wary of PE’s involvement in healthcare with its focus on profit maximization.
- Finding buyers has become increasingly difficult, leaving PE firms holding onto healthcare assets longer than intended.
- Amidst the turmoil, there are opportunities for innovation and collaboration.
- Opportunities exist within many sectors to “disaggregate” platforms, creating local or regional platforms that can operate more efficiently and responsively.
- By learning from the mistakes of the past and embracing a more sustainable approach, PE can still play a role in shaping the future of healthcare.
- PE firms will need to adapt their strategies by focusing on smaller deals, partnerships with payors and existing health systems, and reducing leverage.
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Guardian
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Image Credit: Guardian
France to take stake in Sanofi unit to quell backlash over sale to US firm
- The French government is to take a stake in Sanofi's consumer healthcare division to quell backlash over the sale to US firm CD&R.
- Sanofi is spinning off Opella, which produces popular brands such as Doliprane and Dulcolax.
- France's state-owned investment bank, Bpifrance, will take a 2% stake in Opella if the deal goes through.
- The move aims to ensure French jobs and maintain control over Opella's operations.
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