On Tuesday, three federal agencies, all under the Biden administration, made a unified front against the increasing influence of private equity firms within the health care sector. This trio, consisting of the Justice Department, Federal Trade Commission (FTC), and Department of Health and Human Services, has now officially begun an investigation into the rising trend. They invite the public to share their views and experiences.
Their concern stems from the belief that the commercial objectives of these private equity owners could take precedence over patient care, leading to a reduction in health care quality. Broadly, the operators of these firms are seen as prioritising enhancement of their profits, often at great cost to patient welfare and care.
FTC Chair Lina Khan provided insight into the motivation behind the move, stating that when viewed collectively, these acquisitions can severely stifle genuine competition. This could allow new owners to unfairly elevate prices, diminish the quality of care and stymie competitors without any competitive challenge to their actions.
For more information, please visit this article by law.com.