Lists administrative actions that can be taken now to better regulate private equity’s influence
An advocacy group is lobbying the Biden administration and Congress to use all available means to curb private equity’s growing influence in health care.
Americans for Financial Reform Education Fund wants government officials to take action to slow what it dubs as “the increasingly harmful effects” or private equity’s control of massive swaths of the health care sector. The group has published a report that provides a detailed analysis of the growth of leveraged buyouts in health care, resulting in degraded patient care, immense pressure on physicians and nurses, and financially distressed companies, due to private equity’s debt-driven model.
“We don’t need to wait for further tragedies caused by private equity ownership,” said Robert Seifert, a senior fellow at AFR-EF and author of the report, in a statement. “There are traditional tools that federal agencies can use and loopholes Congress can close to end the siphoning of public health care resources for private profit, which erodes the quality of care and exacerbates patient suffering nationwide.”
The report recommends federal policy solutions that can limit private equity, including measures that do not require Congressional intervention. These include:
“The time has come for action to curb the influence of Wall Street private equity in health care or at least mitigate some of its worst effects,” said Ricardo Valadez, private equity campaign manager with AFR-EF, in a statement. “While we need thorough reform of this sector, executive branch agencies can deal with some of the worst manifestations of private equity in health care by using traditional tools already at their disposal to fight fraud, adjust payment incentives, prevent concentration, and improve transparency in ownership.”