More than a fifth of the healthcare companies that filed for bankruptcy last year were owned by private equity firms, which also have a hand in many healthcare companies teetering on the brink in 2024, according to a report published yesterday by the Private Equity Stakeholder Project (PESP).
The group’s report also names and shames specific “repeat offender” firms. These included KKR—its physician staffing agency Envision Healthcare (which it no longer wholly owns) and oncology provider GenesisCare filed for bankruptcy last year—and H.I.G. Capital, which backed weight management brand Jenny Craig. Both firms also have other companies skirting the line with high credit risks.
Increased levels of debt, often taken on to help fund dividends for investors, leave private-equity-owned companies “more vulnerable to changing market conditions, including high-interest rates and rising labor costs,” PESP wrote in the report. The implementation of the No Surprises Act also fueled high-profile bankruptcies like Envision Healthcare's, they added.
The implementation of the No Surprises Act also fueled high-profile bankruptcies like Envision Healthcare's, they added.
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The group’s report also names and shames specific “repeat offender” firms. These included KKR—its physician staffing agency Envision Healthcare (which it no longer wholly owns) and oncology provider GenesisCare filed for bankruptcy last year—and H.I.G. Capital, which backed weight management brand Jenny Craig. Both firms also have other companies skirting the line with high credit risks.
Increased levels of debt, often taken on to help fund dividends for investors, leave private-equity-owned companies “more vulnerable to changing market conditions, including high-interest rates and rising labor costs,” PESP wrote in the report. The implementation of the No Surprises Act also fueled high-profile bankruptcies like Envision Healthcare's, they added.
The implementation of the No Surprises Act also fueled high-profile bankruptcies like Envision Healthcare's, they added.
Bankruptcies among PE-backed healthcare companies spiked in 2023, report finds
More than a fifth of the healthcare companies that filed for bankruptcy last year were owned by private equity firms, which also have a hand in many healthcare companies teetering on the brink in 2 | Private equity-backed companies represented more than 20% of last year's healthcare...
