Private-equity backed firms have a financial stake in 900 medical offices and other locations in the Philadelphia region, according to a new report from an advocacy group opposed to the spread of the profit-driven business model.. Its report comes as private-equity investment in health care is in the crosshairs of federal regulators, with many lawmakers convinced that the results hurt patients and providers.
Nationwide, as in the Philadelphia area, PE-backed providers have the largest presence in home care, dental services, and mental health/substance use disorder treatment, according to PitchBook. Businesses that deal with musculoskeletal problems, including physical therapy, are another top area for PE.
The reach of private-equity physician practices is still growing. U.S. Digestive Health, a gastroenterology practice based in Exton, recently announced that it wasBut there’s also resistance to an investment model that gathers money from pension funds, endowments, and wealthy individuals to buy companies or stakes in companies. The goal of the PE firm is to make a profit by selling the companies, typically within 10 years.