Private equity firms: Could they help save your hospital?

Description

Abstract: Investment in one sector of the hospital industry has been picking up: capital infusions by private equity firms into not-for-profit hospitals and hospital systems. The common goal of these transactions is to earn above-average profits for the equity investors while maintaining the charitable missions and long-term survivability of the hospitals. But this article examines whether these are contradictory aims, and whether private equity firms can provide relief to financially stressed hospitals. A sidebar provides a list of some of the more active hospital-focused firms, along with the entities that make the investments.