Antitrust Cops Sound Alarm Over Private Equity's Buying Binge in Health Care

"In the aggregate, these roll-up plays can eliminate meaningful competition and allow new owners to jack up prices, degrade quality and neutralize rivals without a competitive check," FTC Chair Lina Khan said.

March 06, 2024 at 08:01 AM

5 minute read

By Chris O'Malley

The original version of this story was published on Corporate Counsel

What You Need to Know

PE firms have spent more than $1 trillion on health care acquisitions over the past decade.
In many markets, that's allowed a single PE firm to build a large market share in some specialties.
PE firms say that by building scale and improving business practices, they reduce waste and free up capital to improve patient care.

Three federal agencies, including the Biden administration's two most zealous antitrust regulators, all but declared war Tuesday on private equity firms' growing ownership and control of health care.

The Justice Department, Federal Trade Commission and Department of Health and Human Services launched an inquiry that seeks public comments on the trend, which they say often puts physician practices and even hospitals in the hands of corporate owners that maximize profits at the expense of patient care.