The body of literature on PE’s role in health care is nearly universally negative. While researchers should evaluate whether PE sponsors have a meaningful impact on health care and health equity, they are also limited by few data sources that allow thorough empirical assessments of PE’s role. A few good studies have found that PE-sponsorship of hospitals is associated with better clinical outcomes for patients’ acute myocardial infarction, and that PE may not have different incentives from other sources of capital. This nuance is important. There are very few (if any) studies in health care or business literature that fully interrogate a truism in health care investing: higher quality, better leadership, stronger technological infrastructure, engaged physicians and providers, and better patient experiences translate to better financial returns.
Read the full article: WCAS: Private Capital Is a Key Component to Improving Health Equity //
Source: https://www.healthaffairs.org/content/forefront/private-capital-key-component-improving-health-equity