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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. afavour · · focus · HN ↗
      Small(er) businesses can be poorly run. In theory private equity takes knowledge already in practise in other locations and shares it with this new location, improving results. Downside of course is that they care a lot less about that specific location than the previous owners would have.

      One specific practise I’d like to see banned is private equity buying companies with debt the company then assumes. It staggers me that it’s legal.

      1. lazide · · focus · HN ↗
        I’ve literally never seen that happen. what does always happen is cutting ‘non essentials’ that are essential until the company implodes.
        1. afavour · · focus · HN ↗
          I suspect there’s a survival bias at work here. The PE purchased companies that continued to thrive are ones you probably never even knew got bought out.
          1. lazide · · focus · HN ↗
            cites?
            1. alex43578 · · focus · HN ↗
              Hilton Hotels, Dell, Burger King, Dunkin Donuts? Google works if you use it.
              1. lazide · · focus · HN ↗
                I guess not everything is a Sears, K-Mart, LastPass, HCR&#x2F;Carlyle, etc, etc. [<a href="https:&#x2F;&#x2F;www.congress.gov&#x2F;119&#x2F;meeting&#x2F;house&#x2F;118337&#x2F;documents&#x2F;HHRG-119-SM27-20250605-SD004.pdf" rel="nofollow">https:&#x2F;&#x2F;www.congress.gov&#x2F;119&#x2F;meeting&#x2F;house&#x2F;118337&#x2F;documents&#x2F;...].
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