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Bill to Ban Private Equity from Owning Medical Practices

509 points · 384 comments · paimapi

  1. NegativeK · · focus · HN ↗
    Can someone steelman private equity, please? I'm honestly looking for the upsides (for non-investors) of when PE moves into an industry like medicine and begins buying up businesses that traditionally aren't already large chains.

    I already hear the downsides frequently from someone whose work is directly affected.

    1. tekla · · focus · HN ↗
      Easy. PE 99% of the time buy businesses that were already failing and provide a lifeline. A failing business can't afford to pay for expensive medical treatments without a loan that a bank will not provide since it is failing.

      People who are vehemently against PE generally do not have any idea of how the system works

      1. thrance · · focus · HN ↗
        That's just not true. Distressed and turnaround investing represent less than 20% of PE acquisitions [0].

        [0] <a href="https:&#x2F;&#x2F;www.ey.com&#x2F;en_us&#x2F;insights&#x2F;private-equity&#x2F;pulse" rel="nofollow">https:&#x2F;&#x2F;www.ey.com&#x2F;en_us&#x2F;insights&#x2F;private-equity&#x2F;pulse

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