Story perspectives

Private Equity Fuels 88% of Major Healthcare Bankruptcies

2/13/2025

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Summary

Story summary

In 2024, private equity-backed firms represented 88% of healthcare bankruptcies exceeding $500 million, as reported by PESP.
Healthcare bankruptcies constituted 21% of total U.S. corporate bankruptcies last year.
Steward Health Care notably filed for Chapter 11 following private equity involvement.
PESP cautions that private equity's profit-driven approach contributes to mismanagement and rising bankruptcy rates, affecting patient care.
This trend poses significant concerns for policymakers, investors, and consumers regarding access to vital healthcare services.

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Story summary

In 2024, private equity-backed firms represented 88% of healthcare bankruptcies exceeding $500 million, as reported by PESP.
Healthcare bankruptcies constituted 21% of total U.S. corporate bankruptcies last year.
Steward Health Care notably filed for Chapter 11 following private equity involvement.
PESP cautions that private equity's profit-driven approach contributes to mismanagement and rising bankruptcy rates, affecting patient care.
This trend poses significant concerns for policymakers, investors, and consumers regarding access to vital healthcare services.