The role of private equity in the healthcare industry is expected to grow in the upcoming year, according to Shamika Mazyck, a Health & Life Sciences attorney at Quarles & Brady’s Indianapolis office. In an article for Healthcare IT Today, Mazyck shared her insights on the potential implications of private equity firms becoming more active in healthcare.
As the industry continues to evolve, Mazyck predicts that private equity firms will increasingly invest in healthcare businesses to support the development of innovative healthcare delivery models. These models will aim to facilitate care outside of traditional acute hospital or clinical office settings, with a focus on expanding access through telehealth, performing infusion services in the home, and conducting decentralized clinical trials.
However, Mazyck also warns of the potential for revenue-driven goals to lead to increasing calls for regulatory scrutiny around these deals and the operations of healthcare businesses owned or controlled by investment companies. To navigate these challenges, she emphasizes the importance of engaging a team of subject matter experts to fully understand the operational aspects and compliance requirements of these models. Furthermore, she highlights the need for Business leaders and firm managers to involve healthcare professionals and diverse community leaders to ensure that operations are implemented in a compliant manner that increases access while meeting the standard of care.
The anticipated growth of private equity in the healthcare industry comes on the heels of a historical trend of private equity investment in healthcare. Over the years, private equity firms have increasingly recognized the potential for high returns in the healthcare sector, leading to a surge in investment activity. As the landscape continues to shift, it will be crucial for industry professionals to stay informed and proactive in addressing the implications of private equity investments in healthcare.
In conclusion, as private equity firms look to play a larger role in shaping the future of healthcare delivery models, the industry must remain vigilant in addressing the potential regulatory and operational challenges that come with these developments. By engaging a diverse range of experts and stakeholders, healthcare businesses can navigate this shifting landscape and ensure that innovative models are implemented in a compliant and equitable manner.
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