Private Equity—The Metastasizing Disease Threatening Health Care

Private Equity—The Metastasizing Disease Threatening Health Care
Health Affairs
December 18, 2023
In 2010, when purchasing Prospect Medical Holdings, the private equity firm Leonard Green and Partners made numerous lofty promises to state regulators around expanding services, capital investments, and modernization. They assured regulators they would not only maintain hospitals but would increase the quality of care. Over the course of its 10-year ownership, Leonard Green broke many of the promises made to regulators.
Editor's Note: This article articulates some of the challenges that can occur when private equity moves into the healthcare space.