The growing concentration of PE-owned healthcare entities has prompted escalating levels of interest from government regulators. Specifically, the government has begun questioning PE owners’ post-acquisition business practices—particularly the managing of their portfolio companies—and alleging that PE involvement in the management of their portfolio companies can lead to operating changes that prioritize profits over patient outcomes. PE firms need to anticipate likely government reactions to deals and operating models and adopt a proactive and comprehensive approach to compliance, risk management, and patient care that is within their risk appetite.
Read the full article: Healthcare Private Equity: Managing Increased Regulatory Scrutiny //
Source: https://guidehouse.com/insights/healthcare/2024/healthcare-private-equity-regulatory-scrutiny