Private Equity’s Growing Influence in Massachusetts Healthcare: An Analysis of Its Impact and Regulatory Oversight

Legislators focus on private equity’s role in health care following Steward Healthcare’s challenges

Private equity is increasingly shaping the healthcare landscape in Massachusetts, with its presence in healthcare transactions more than doubling in recent years. This trend is expected to continue as industry consolidation, for-profit ownership, and private equity investment continue to reshape the healthcare sector in the state.

According to data from the Health Policy Commission (HPC), private equity was involved in 25 percent of healthcare transactions between 2013 and 2016. This number rose to 47 percent between 2017 and 2020 and further increased to 63 percent between 2020 and 2023. This data raises concerns about the impact of private equity on the healthcare system and the need for regulatory oversight.

In response to these concerns, HPC Executive Director David Seltz has emphasized the importance of addressing these issues to prevent future crises like the one facing Steward Health Care. He stressed that urgent action is needed to ensure the stability and sustainability of the healthcare system in Massachusetts. Legislative leaders have tasked the HPC with investigating regulatory gaps and proposing policy changes to address the challenges faced by healthcare providers.

A recent transaction where Medical Properties Trust acquired Steward’s Massachusetts properties without notifying HPC highlights the need for stronger regulatory oversight. As discussions continue, it is clear that the healthcare industry in Massachusetts is at a critical juncture, with the future influenced by private equity interests and the need for comprehensive regulatory reform.

Private equity is increasingly shaping the healthcare landscape in Massachusetts, with its presence in healthcare transactions more than doubling in recent years. This trend is expected to continue as industry consolidation, for-profit ownership, and private equity investment continue to reshape the healthcare sector in the state. According to data from the Health Policy Commission (HPC),…

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