The Rise of Private Equity in Health Care — Not a Uniquely American Phenomenon

Private equity investments in global health care have surged, reaching $446 billion between 2018 and 2022. Historically associated with U.S. health care financialization, private equity has expanded into high-income countries, including Canada, Germany, Sweden, and Australia.

The article explores how private equity firms enter health care sectors, focusing on profit opportunities within privatized health services. For example, in the United Kingdom, firms largely avoid public hospitals due to fixed NHS pricing, instead targeting general practice contracts and long-term care facilities. Similarly, in Canada, firms focus on private outpatient clinics rather than publicly funded hospitals.

While these investments bring efficiency-driven restructuring, concerns include reduced competition, facility closures, staffing shortages, and financial instability. Germany enacted geographic restrictions on private dental ownership, while Sweden subjects private clinics to public pricing regulations to limit corporate influence.

The authors argue that data gaps hinder policy action, as private equity deals lack systematic reporting requirements. To regulate this trend, governments must enhance transparency on ownership and pricing, ensuring patient interests and health care quality remain prioritized.

Private equity investments in global health care have surged, reaching $446 billion between 2018 and 2022. Historically associated with U.S. health care financialization, private equity has expanded into high-income countries, including Canada, Germany, Sweden, and Australia.

The article explores how private equity firms enter health care sectors, focusing on profit opportunities within privatized health services. For example, in the United Kingdom, firms largely avoid public hospitals due to fixed NHS pricing, instead targeting general practice contracts and long-term care facilities. Similarly, in Canada, firms focus on private outpatient clinics rather than publicly funded hospitals.

While these investments bring efficiency-driven restructuring, concerns include reduced competition, facility closures, staffing shortages, and financial instability. Germany enacted geographic restrictions on private dental ownership, while Sweden subjects private clinics to public pricing regulations to limit corporate influence.

The authors argue that data gaps hinder policy action, as private equity deals lack systematic reporting requirements. To regulate this trend, governments must enhance transparency on ownership and pricing, ensuring patient interests and health care quality remain prioritized.