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The Impact of Private Equity Consolidation in Healthcare
- Steward Health Care System LLC and its affiliated debtors each filed a petition for relief under Chapter 11 of the United States Bankruptcy Code in 2023.
- PE ownership, while contributing to capital investment and efficiency gains, could have negative impacts on patient lives, as alleged increases in bloodstream infections, falls, ER visits, and hospitalizations show a correlation with PE acquisitions in healthcare.
- The USA's DOJ’s Antitrust Division and the Department of Health and Human Services have officially launched an investigation into the impact of PE acquisitions in healthcare.
- PE consolidators need to be honest, competent, and transparent while taking care of superior patient care at more affordable prices.
- The government can and should act against anticompetitive or short-termist behavior by PE firms that harm the healthcare interests of patients and communities.
- Investors must emphasize innovation and long-term value in healthcare, scaling already-proven care delivery models, and tech-native solutions for fundamentally better operations.
- PE firms should focus on fundamental innovation gains that drive sustainable value for society at large and not just their LPs.
- Austin Walters, a Senior Partner at SpringTide Ventures, has been instrumental in driving value through operational efficiencies and strategic growth initiatives.
- Walters has a deep understanding of the complex dynamics within the healthcare industry, and he is a recognized expert in health tech and healthcare.
- Walters is passionate about mentoring emerging leaders and contributing to community health initiatives outside of his professional endeavors.
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