Watchdog group calls out risks associated with private equity in cardiology, other specialties
The Private Equity Stakeholder Project (PESP), a nonprofit group focused on how private equity (PE) investments and Wall Street influence the U.S. economy, has developed a new risk score for estimating PE’s impact on different states.
The Private Equity State Risk Index includes 16 different risk factors. According to PESP’s calculations, New Mexico faces the greatest risk from PE-related mergers and acquisitions, followed by North Carolina, Arizona, Florida and Nevada.
The PESP also detailed how it fears PE will impact different sectors of the U.S. economy. In healthcare, for example, the group fears that patient care will suffer, medical costs will increase and “critical healthcare facilities” will close.
U.S. Senator Elizabeth Warren, an outspoken critic of PE's influence and former presidential candidate, shared her support for the new risk score and PESP’s overall mission to raise awareness about this issue.
Sen. Elizabeth Warren, D-Mass.
“Let’s call out private equity’s abuse for what it is: legal looting,” she said. “The Private Equity Stakeholder Project’s new state risk index is a razor-sharp tool in the fight to hold private equity accountable. Together, we’re taking on this trillion-dollar, behemoth industry that’s hurting working people and sucking money out of the rest of the economy.”
“By providing transparent data on the risks associated with private equity investments, we empower communities, working families, and policymakers to advocate for change and protect their states from the threats posed by unchecked private equity firms,” added Chris Noble, PESP policy director. “This is an important step toward mitigating the risk and tangible harms wrought by private equity across the county.”
Private equity’s impact in cardiovascular care
The rise of PE continues to be one of the biggest trends in all of healthcare, and its presence in cardiology seems to be growing by the day. Cardiovascular Associates of America, Cardiovascular Logistics and other PE-backed cardiology management groups are acquiring more and more practices, and the trend has shown no signs of slowing down.
A recent survey found that a majority of physicians have a negative opinion about the rise of PE in cardiology, radiology and other healthcare specialties. Just last month, thousands of U.S. physicians united to launch a new Coalition for Patient-Centered Care.
In addition, the increasing influence of PE was one of the biggest topics at ACC.24, the annual meeting of the American College of Cardiology (ACC). ACC.24 focused on the business of cardiology much more than previous ACC meetings, in part as a response to ongoing trends cardiologists are witnessing throughout the country.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.