Private equity funds that invest in healthcare companies hoped to piggyback on venture capital’s bid to get a share of COVID-19 small business bailout funds, but the Trump administration has snubbed them so far. Congress set aside $350 billion for small business assistance in the Coronavirus Aid, Relief, and Economic Security Act. Qualifying companies must have 500 employees or fewer. Under a set of standards called “affiliation rules,” the administration determined that most private equity-owned companies, including healthcare practices hard hit by cancellations of elective procedures, won’t qualify. If physician practices aren’t able to access small business assistance, they still have other options to tide them over until the lockdowns relax. Any provider that bills Medicare received grant funding from a provider relief fund created in the CARES Act, and the CMS expanded eligibility for Medicare accelerated payments. Many providers are also trying to increase credit lines through existing relationships with lenders.
Read the full article: Private Equity-Owned Doc Practices Shut out of Small Business Bailout //
Source: https://www.modernhealthcare.com/finance/private-equity-owned-doc-practices-shut-out-small-business-bailout