Private Equity Dominance Threatens Massachusetts Healthcare Industry: Urgent Action Needed to Address Concerns and Prevent Future Crises

Legislators focus on private equity’s role in health care following Steward Healthcare’s challenges

The healthcare industry in Massachusetts is facing financial challenges due to the growing role of private equity. According to officials, private equity has become an increasingly dominant force in healthcare transactions in the state. This trend is expected to continue as industry consolidation, for-profit ownership, and private equity investment shape the healthcare landscape.

Recent data from the Health Policy Commission (HPC) reveals that private equity was involved in 63 percent of healthcare transactions between 2020 and 2023. This represents a significant increase from just 47 percent between 2017 and 2020 and more than double the number of transactions involving private equity between 2013 and 2016. This data raises concerns about the impact of private equity on the healthcare system and the need for regulatory oversight.

HPC Executive Director David Seltz emphasized the importance of addressing these issues to prevent future crises like the one facing Steward Health Care. He stressed that urgent action is needed to ensure the stability and sustainability of the healthcare system in Massachusetts. Legislative leaders have tasked the HPC with investigating regulatory gaps and proposing policy changes to address the challenges faced by healthcare providers.

The recent transaction where Medical Properties Trust acquired Steward’s Massachusetts properties without notifying HPC highlights the need for stronger regulatory oversight. As discussions continue, it is clear that

Leave a Reply