Private equity firms typically buy privately owned companies and restructure them to maximize profits for investors. Private equity has been expanding its presence in the healthcare industry in recent years, with firms buying up hospitals, nursing homes, medical practices, ambulance providers and companies specializing in medical debt collection.

A new study examines how both healthcare spending and patient visits changed among private equity-acquired medical practices compared to independently owned medical practices from 2016 to 2020. The researchers found that private equity-acquired medical practices charged 20 percent more, on average, per insurance claim, and saw a nearly 40% increase in new patients compared to independently owned practices. Joining us now is Jane Zhu, a primary care physician and an assistant professor of medicine at Oregon Health & Science University, who co-authored the study published in JAMA Health Forum.