Private Equity: Private Equity to Invest More in Women’s Healthcare

Private equity has already heavily invested in the healthcare industry, but women’s healthcare has been overlooked.  However, there has been a “substantial increase” in women’s health providers connected to private equity companies.  According to researchers, 17 of the 24 women’s health companies that gained private equity sponsorship between 2010 and 2019 occurred between 2017 and 2019.  In fact, this could be an underwhelming estimation.  According to co-author Joseph Bruch at Harvard University, “I think it’s fair to say that even though we documented a pretty profound number, it’s much lower than the total offices and providers that have private equity affiliations.”  

Concern has risen among many people who are skeptical about the effect of private equity on the women’s health industry.  The main question is how private equity companies will balance their profit motive with improving women’s healthcare.  Historically, private equity deals involve buying hospitals and practices, taking cost-saving measures, and selling them for a profit.  This process could attract clinicians.  On the other hand, some wonder whether the push for profits will reduce the quality of care physicians provide.  For instance, some physicians have reported low-quality supplies and having to recommend more expensive procedures to patients.  

Private equity can also have a positive effect on women’s healthcare.  Private equity investments in women’s healthcare can lead to improved technology, drugs, and services.  According to a private equity company providing outsourced OB GYN departments, the number of deaths and permanent injuries to mother and child decreased by 30 percent through their investments.  

Ultimately, the effectiveness of large private equity companies in the women’s healthcare industry is yet to be determined.  There is still a lot of evidence and data to be collected in order to determine whether private equity provides a net gain in this field.