U.S. lawmakers are taking aim at private equity in health care. Here’s what is happening in Canada – CBC

Public inquiry in U.S. looking at growing involvement of private-equity firms in health care

May 06, 2024

In the U.S., the growing role of private equity firms in health care is coming under heightened scrutiny, with Senate committee hearings and a cross-government public inquiry launched earlier this year.

“When private equity firms buy out health-care facilities only to slash staffing and cut quality, patients lose out,” said Federal Trade Commission Chair Lina M. Khan in a statement.

The U.S. Federal Trade Commission and two U.S. departments are looking at whether consolidated ownership may sacrifice patient care and worker safety to generate profits for private-equity investment firms, while costing taxpayers.

In the U.S., companies backed by private equity firms manage emergency rooms and anesthesiology practices. Private equity firms are even buying whole hospitals in the U.S.

That’s not happening in Canada, but private equity investment firms have bought up facilities outside of hospitals, starting about 25 years ago with long-term care homes. That arrangement didn’t show up on the public radar until the COVID-19 pandemic emergency, which hit care homes exceptionally hard.

Read more: https://www.cbc.ca/news/health/health-care-private-equity-1.7193466