U.S. lawmakers are taking aim at private equity in health care. Here's what is happening in Canada | CBC News LoadedIn the U.S., the growing role of private equity firms in health care is coming under heightened scrutiny, with senate committee hearings and a public inquiry underway. In Canada, private equity firms have also bought up health-care facilities outside hospitals, and experts point to studies suggesting what's good for the firms’ bottom line may not help patient care.
In health care, private equity firms may buy up independent clinics to create chains. The goal is to achieve economies of scale by, for example, purchasing medications in bulk or hiring a bookkeeping firm to manage multiple clinics — creating profits for shareholders. "Companies are bought and held just long enough to make the whole enterprise more profitable and then they're flipped for a higher price" to another company, Yalnizyan said. "It's kind of like house flipping, except it's corporate consolidation."looked at 55 studies from eight countries including Canada, mainly focused on private-equity ownership of nursing homes, hospitals, dermatology clinics and ophthalmology clinics.
The American Investment Council, which advocates for the private equity industry, disagrees with FTC's Khan. In a response to questions from CBC News, Clearpoint said its mission centres on patient safety and patient experience, adding it is a "trusted partner of public health authorities in every province where we operate."