Opinion: Private Equity and Health Care Delivery
- August 11, 2021
- 1 min read
- Brian W. Powers, MD, MBA; William H. Shrank, MD, MSHS; Amol S. Navathe, MD, PhD
Value-Based Payment as a Guardrail?
Private equity investments in health care delivery have increased substantially during the past decade, a trend that has raised concern among some researchers and policy makers. Critics are concerned that the financial incentives inherent in private equity ownership (ie, to substantially increase financial performance during a relatively short period) may lead to decisions and practices that are at odds with the best interests of patients and physicians. These concerns often emanate from high-profile examples of facility acquisition that results in higher negotiated prices and of high rates of surprise billing by private equity–owned physician groups.