Private equity firms now own up to a quarter of behavioral health practices in some states, according to a new national study by researchers from Oregon Health & Science University, the University of Pennsylvania and Yale University. But private equity ownership of outpatient and residential behavioral health facilities in Oregon is lower than the national average, the study found. In the big picture, private equity investors are showing an increased interest in behavioral health, even though this health care sector is notorious for low profit margins.
Private equity firms invest other people’s money, usually with an incentive to make large profits on a short term basis – akin to flipping a house. In the health care industry, the growth of private equity has raised eyebrows, as policymakers worry that physicians and their patients will lose the ability to make the best choices possible in a push for short-term gains. The study makes no determination about whether private equity ownership affects a patient’s access to care or its quality.
“It all comes down to what kind of care they’re providing,” said Dr. Jane Zhu, the study’s lead author and associate professor of medicine in the OHSU School of Medicine. “If these firms are expanding to increase access for people who otherwise wouldn’t be able to receive behavioral health treatment, that could be positive.
” Some studies have shown that when corporations or private equity investors buy out a health care co.