This past year saw 17 private equity-owned companies in healthcare filing for bankruptcy.
The numbers are clear—more and more bankruptcies happening in healthcare are related to private equity.
According to research by the Private Equity Stakeholder Project, 17 of the estimated 80 healthcare bankruptcies in 2023 involved companies backed by private equity firms.
That figure is more than twice the number of cases in 2019, illustrating the growth of private equity’s presence in recent years, as well as the shift towards more negative outcomes.
Check out the data below:
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Jay Asser is the contributing editor for strategy at HealthLeaders.
KEY TAKEAWAYS
The Private Equity Stakeholder Project released data that shows private equity bankruptcies in healthcare have increased significantly.
Bankruptcies not only derail organizations financially, but they can lead to a disruption of care and services for patients.