While government enforcement has traditionally been an indirect concern for private equity (“PE”) investors, such as looking at whether a target entity has been sanctioned or could be sanctioned in the future, the current trend in government enforcement has been to target PE firms directly.Continue Reading PE Firms Face Liability for the Conduct of their Portfolio Companies: Are you Paying Attention?
As we approach the middle of the first quarter of 2023, private equity firms have continued to demonstrate their interest in investing in digital health. This does not come as a surprise, as most startups in the healthcare technology space have been active in developing attractive strategies. These companies strive to improve health outcomes and lower expenses by focusing on specific gaps, issues or illnesses, prioritizing technological innovation, and customizing individualized care plans.Continue Reading Private Equity and Digital Health in 2023: Policy Updates and Trends to Watch
It is widely reported that healthcare is a top antitrust enforcement priority in the U.S. The healthcare industry has undergone a transformation over the over the last twenty years and now comprises 17.7% of the U.S. gross domestic product and over $3.795 trillion of the U.S. government budget. Mega-deals among national payors and household names have grabbed headlines and been targets of enforcement by the U.S. Department of Justice, Antitrust Division (the “DOJ”) and Federal Trade Commission (“FTC”) (collectively, “the Agencies”). Continue Reading Private Equity & Healthcare: Antitrust Enforcement in 2023–PE Roll-Ups in the Cross Hairs
As the world continues to shift and adapt to the ongoing COVID-19 pandemic, the digital health sector has experienced tremendous growth and the momentum has only accelerated in 2021.
Continue Reading Trends in Digital Health Funding and Transactions: A Tremendous Year So Far
With the uptick in the pace of vaccinations and lifting of restrictions in many states over the past few weeks, a clearer picture of the road ahead is coming into focus. In a timely discussion, Los Angeles’ Association for Corporate Growth (ACG) hosted healthcare industry leaders to share lessons learned over the past year, what’s here to stay, and what’s on the horizon. ACG dubbed the panel “Coming up for Air: Healthcare Investing and Growth in 2021 and Beyond,” which featured leaders from various healthcare sectors, including Shane Armstrong, President and General Counsel at American Vision Partners (AVP); John DiGiovanni, Investment Partner at Arsenal Capital; and Rob Mahan, CEO at Exer Urgent Care. The panel was moderated by Aytan Dahukey, Partner and Private Equity Team Leader at Sheppard Mullin and Adam Abramowitz, Managing Director at Intrepid Investment Bankers.
Continue Reading ACG Panel Paints a Bright Future for Healthcare Investment and Growth
As it continues to grapple with the COVID-19 pandemic, the healthcare sector will face increased antitrust scrutiny from the Biden administration, with the Federal Trade Commission (the “FTC”) and Department of Justice, Antitrust Division (the “DOJ”) (together the “Agencies”) as the Agencies ramp up their reviews not just of “horizontal” transactions (i.e., deals between competitors), but also of “vertical” transactions (i.e., deals that combine market participants at different levels of the healthcare industry, such as payors, hospitals, and physician practices).
Continue Reading Vertical Deals in Healthcare: Key Antitrust Takeaways for Private Equity Firms
According to New York’s Department of Health Commissioner, “nearly half [of] New York’s 227 hospitals are financially distressed.”[1]
What then is the future for New York’s hospitals, especially in light of healthcare reform and declining reimbursement rates?Continue Reading Has New York State Failed its Hospitals?
The Affordable Care Act is driving innovation at all levels of the healthcare system, creating opportunities for small start-ups to compete with industry giants. One such start-up is Oscar, a venture-backed health insurance company that launched on the New York State Health Plan Marketplace, and the State’s first new commercial health insurer in 15 years.[1]
Continue Reading Oscar, a new, venture-backed health insurance company, seeks to compete against industry giants
Should private equity play a bigger role in New York State healthcare facilities? This is the question facing New York State legislators for the second year in a row.
Historically, investor-owned corporations have been essentially prohibited from owning and operating healthcare facilities in the state. Governor Cuomo’s proposed 2014-2015 budget and associated legislation would authorize a two-year private equity pilot program.[1]Continue Reading New York State budget negotiations contemplate private equity investment into hospitals…again