March 06, 2024

Federal Agencies Launch Public Inquiry Into Private Equity Control Over Healthcare

The U.S. Federal Trade Commission, Department of Justice (DOJ), and the Department of Health and Human Services (HHS) launched a public inquiry into private equity and other corporations’ increasing control over healthcare. A press release announcing the initiative noted the growing involvement of private equity firms and corporate owners in healthcare and suggests that this may lead to “a maximizing of profits at the expense of quality care.”

The agencies issued a Request for Information (RFI) requesting public comment on deals conducted by health systems, private payers, private equity funds and other alternative asset managers that involve healthcare providers, facilities, or ancillary products or services. The inquiry seeks to understand “how certain healthcare market transactions may increase consolidation and generate profits for firms while threatening patients’ health, workers’ safety, quality of care, and affordable healthcare for patients and taxpayers.” Comments are due by May 6.

For more information, contact Gloria Romanelli, American College of Radiology® Senior Director, Legislative and Regulatory Relations, Legal Counsel, Quality and Safety.