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Bill to Ban Private Equity from Owning Medical Practices

https://truthout.org/articles/warren-introduces-bill-to-ban-private-equity-from-owning-medical-practices/
49•paimapi•54m ago

Comments

jimbob45•28m ago
Bi…cameral legislation?
NegativeK•25m ago
Can someone steelman private equity, please? I'm honestly looking for the upsides (for non-investors) of when PE moves into an industry like medicine and begins buying up businesses that traditionally aren't already large chains.

I already hear the downsides frequently from someone whose work is directly affected.

twoodfin•22m ago
The upside is to the folks who sold the businesses they owned.

Should they be outlawed from selling to certain classes of investor? Which?

Grombobulous•17m ago
It should be more about making certain levels of consolidation and deep erosion of local ownership illegal.

We have run this country on an assumption that we must give businesses a high amount of freedom. An argument can be made that businesses have been given too much freedom in our system. We’ve allowed Amazon and Ticketmaster and Walmart to exist and they shouldn’t exist in their present form.

Healthcare practices that provide necessary care shouldn’t even really be allowed to be for-profit entities if you ask me. The incentives become too perverse as a result.

lotsofpulp•10m ago
Can you define profit? Would a doctor be allowed to earn more than $200 per hour? $300 per hour? $400 per hour? Is a doctor allowed to be paid per procedure or time?

How much would you want to sacrifice your 20s and early 30s? How much would you need to work in the middle of nowhere where your kids won’t have the best opportunities?

Grombobulous•9m ago
I updated my comment, I mean a for-profit entity versus non-profit, which the IRS already defines.

Not-for-profit entities can still pay market rate wages to employees and owners.

tekla•7m ago
Should Doctors have a legally enforced max pay? Same with the web devs, max $150K, anything else is just profit driven bullshit right?
Grombobulous•5m ago
No, not-for-profit entities pay market rate salaries. This is already a well-established system.
tekla•15m ago
Easy. PE 99% of the time buy businesses that were already failing and provide a lifeline. A failing business can't afford to pay for expensive medical treatments without a loan that a bank will not provide since it is failing.

People who are vehemently against PE generally do not have any idea of how the system works

thrance•9m ago
That's just not true. Distressed and turnaround investing represent less than 20% of PE acquisitions [0].

[0] https://www.ey.com/en_us/insights/private-equity/pulse

Tanjreeve•8m ago
They don't have to have an in-depth understanding of leveraged finance to get pissed off when their doctors start doubling prices or their own employment conditions get worse or their parents get treated badly in care homes because the staff are now overworked etc. they're mad at the outcomes they're overwhelmingly not actually trying to debate the merits of it from an exit liquidity perspective.
thrance•16m ago
Nothing a few bills slipped to republican and "moderate" democratic senators won't fix!

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Bill to Ban Private Equity from Owning Medical Practices

https://truthout.org/articles/warren-introduces-bill-to-ban-private-equity-from-owning-medical-pr...
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