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Infographic: 4 Facts On Private Equity Bankruptcies

Analysis  |  By Marie DeFreitas  
   June 18, 2024

Private equity bankruptcies are projected to increase in 2024.

Private equity is woven into many health systems, and it’s not always playing out well. According to a new report by the Private Equity Stakeholder Project, health systems funded by private equity have entered a pattern of financial distress and bankruptcies. The report notes that 2023 marked a record year of large healthcare bankruptcies, and private equity accounted for some of the largest ones.

According to the findings, this wave of financial distress is projected to continue throughout 2024 as many organizations face credit rating downgrades and potential defaults. Most of the companies at risk are owned by private equity. This raises questions about private equity's place in healthcare, as well as CFO strategies and care outcomes. Taking this evidence into consideration, CFOs should look at weighing the pros and cons of private equity and if it truly is helping an organization move forward towards its financial and clinical goals. 


Marie DeFreitas is the finance editor for HealthLeaders.

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