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By: Allen Grunes, Michael King from Brownstein Hyatt Farber Schreck
As this fall's election approaches, headwinds have been brewing in DC and state legislatures for private equity health care dealmaking, many of them with bipartisan support. While a key Senate committee scrutinized patient care ramifications from the Steward Health Care bankruptcy and California passed the first attorney general review of health care acquisitions, the FTC's muscular opposition to health care roll-ups and noncompetition covenants continues to reverberate.
On Sept. 12, the Senate Health, Education, Labor and Pensions (HELP) Committee held a hearing titled "Examining the Bankruptcy of Steward Health Care: How Management Decisions Have Impacted Patient Care." The hearing focused on the consequences of the mismanagement of Steward Health Care and impacts on surrounding communities. Chairman Bernie Sanders (I-VT) labeled the U.S. health care system as broken, prioritizing corporate profits over patient care. He blamed the role of private equity, particularly Steward Health Care CEO Ralph de la Torre deploying financial strategies that left hospitals deeply in debt and forced to close while he and his partners profited significantly. Chairman Sanders described private equity as driving up health care costs and diminishing care quality and demanded both accountability and reform. Ranking Member Bill Cassidy (R-LA) shared concerns about the level of patient care and mismanag...................... To view our full article Click here
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