• Tue. May 21st, 2024

Report Finds Increase in Bankruptcies for Private Equity-Owned Health Care Companies in 2023

BySamantha Johnson

Apr 17, 2024
Report Finds Increase in Bankruptcies for Private Equity-Owned Health Care Companies in 2023

A new report from an advocacy group that monitors the health-care sector has revealed that private equity-owned businesses were responsible for a significant number of bankruptcies in the industry last year. According to the report, PE-backed firms accounted for at least 17 out of the 80 bankruptcies of health-care companies in 2023, making up about a fifth of the total. The report also highlighted that venture-capital backed companies were behind another 12, or 15%, of the filings, focusing on companies with liabilities exceeding $10 million.

The report, set to be released Wednesday, identified 2023 as a “record year” for large health-care bankruptcies. The findings indicate that a wave of distress may be looming in the health-care sector, with private equity and venture capital-backed firms facing financial challenges. The data suggests that these types of ownership structures may be contributing to the financial difficulties experienced by health-care companies.

As the health-care industry continues to face uncertainty and financial strain, it is crucial for stakeholders to monitor the impact of private equity and venture capital ownership on the stability and resilience of companies in the sector. The report raises important questions about the role of private equity in the health-care industry and the potential implications for companies, employees, and patients. It underscores the need for greater transparency and accountability in the ownership structures of health-care businesses to address the challenges facing the industry.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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