This paper investigates the effect of private equity buyouts in the long-term care facilities. Using the comprehensive data from Office of Statewide Health Planning and Development in U.S., the authors show the outcome of private-equity buyouts is considerable when it comes to the profitability of target facilities. In terms of employment, PE-backed long-term care clinics increase the number of employees relative to non pe-backed facilities located in the same city. Studying the buyouts effect on nearing non PE-backed long-term care clinics, the authors find, surprisingly, there is no statistical evidence that the PE-backed clinics hurt operations of neighboring non PE-backed facilities.
Read the full article: The Effect of Private Equity Buyouts on Targets: Evidence from the Long-Term Care Clinics //
Source: https://www.sciencedirect.com/science/article/abs/pii/S0313592626001116