The healthcare industry in Massachusetts is facing financial challenges, and the growing role of private equity is drawing attention to this issue. According to industry officials, the presence of private equity in healthcare transactions has more than doubled in recent years. As consolidation, for-profit ownership, and private equity investment continue to shape the landscape of healthcare in the state, it’s expected that this trend will continue.
The Health Policy Commission (HPC) has been monitoring this trend closely and revealed that private equity was involved in 25 percent of healthcare transactions between 2013 and 2016. This number increased to 47 percent between 2017 and 2020 and further rose to 63 percent between 2020 and 2023. 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.
Recent discussions about a transaction where Medical Properties Trust acquired Steward’s Massachusetts properties without notifying HPC highlight the need for stronger regulatory oversight. It’s clear that the healthcare industry in Massachusetts is at a critical juncture, with its future influenced by private equity interests and a need for comprehensive regulatory reform.
Steward Health Care is facing financial challenges as a result of this trend, raising concerns about how it will continue operating in Massachusetts. Private equity’s growing presence in healthcare transactions threatens to undermine public health goals while also increasing costs for patients.
As such, there are calls for stronger regulation and oversight to protect consumers from predatory practices by private equity firms. There is also a need for increased transparency around how these transactions are conducted so that patients can make informed decisions about their care.
Overall, it seems clear that steering clear of private equity involvement in our health care system will be vital if we want our hospitals to remain accessible, affordable, and effective at meeting our needs as citizens.
