Strategic private equity investments are increasing access to high-quality care and creating better health outcomes.

•  Since 2006, private equity has committed nearly $1 trillion to U.S. health care, representing 12.7% of all health care investment.  

• Through this limited but critical role, private equity is helping hospitals and providers stay in business and deliver essential care to patients, especially in rural communities.   

• Providers backed by private equity are able to spend more time focusing on healing their patients and less time wading through administrative responsibilities.

• Private equity investment is fueling the development of cutting-edge technologies and devices that improve patient care quality.

As outlined in a new video and reported by POLITICO, private equity is committed to investing in and improving the U.S. health care system. From creating much-needed administrative efficiencies to expanding access to high-quality, affordable health care, learn how private equity investments support better outcomes for patients and providers across the country.

Supporting health care providers across the country and keeping practices in business

Private investment brings the capital and expertise necessary to help providers maintain and grow their practices. For example, as rural hospitals continue to face financial challenges, private equity is backing hospitals that have higher rurality scores and are located in ZIP codes with lower median household incomes. Thanks to these investments, providers can continue to provide care that is essential to the health of rural communities, which face limited access to care.

Moreover, private equity often steps in to support physician practices and hospitals invest in improving their businesses. One study found, for example, that private equity-backed hospitals are associated with improvements in several quality measures and larger increases in net income, ultimately resulting in better care for patients.

Focusing on improving health outcomes, not paperwork

Private equity’s support also helps alleviate the administrative burdens of running a practice, like business paperwork or insurance claims negotiations, so providers can spend more time caring for patients – a point the Medicare Payment Advisory Commission (MedPAC) echoes.

With more time to focus on their patients, private equity-backed providers can work on improving health outcomes. For example, researchers observed a greater decrease in both in-hospital mortality and 30-day mortality among patients with acute myocardial infarction (AMI) in private equity acquired-hospitals compared with non-private equity-acquired hospitals. Additionally, private equity ownership was associated with a decrease in the probability of confirmed COVID-19 cases among nursing home residents and staff – reflecting private equity’s efforts to fight the COVID-19 pandemic.

Investing in innovative technologies

Private equity is bolstering the development of new innovations in the field of medicine, and, as a result, expanding patients’ access to life-saving care and technologies. Over the last decade, private equity has invested $280 billion in over 1,800 life science and medical device companies – like Spinal Stabilization Technologies, which develops new medical devices that help alleviate common causes of lower back pain. In partnership with private equity, Spinal Stabilization Technologies has been able to expand its capabilities, create new spinal technologies, and reach more patients.

Not only that, but private equity gives providers the opportunity to integrate the latest innovations into their practices. One Health Affairs study found, for example, that private equity-backed hospitals are more likely to adopt technologies and introduce them into their service lines, improving the patient care experience.

The bottom line

Private equity’s critical health care investments enable the development of innovative technologies and the growth of medical practices, so providers can focus on what’s most important: delivering high-quality care and improving patients’ health outcomes.

To learn more about the many ways private equity is improving U.S. health care, click HERE.