Amid widespread critiques of the U.S. healthcare system—the high costs, chronic inefficiency, and the labyrinth patients must navigate to receive care—the role of private equity in healthcare has come under recent scrutiny by the Biden administration. Critics have been quick to attribute a number of these problems—which predate private equity’s participation in the sector—to its entrance in the market.
Such assertions are nonsensical, however. Private equity can play an important role in not just fixing these chronic problems but also in delivering a paradigm shift in healthcare delivery. Through strategic expansions, technological advancements, enhanced patient experiences, and quality care, along with managerial expertise, private equity promises to bring managerial innovation in a sector in dire need of reform.
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