McKnight's Podcast

New report about private equity in home health raises red flag, authors say

Episode Summary

A new report reveals that the top five private equity firms collected over $850 million in Medicare revenue and operated almost 280 locations in 2020. These findings should sound an alarm bell for antitrust regulators, according to the report’s authors, Diana L. Moss, president of the American Antitrust Institute, and Oscar Valdes Viera, research manager for Americans for Financial Reform. They spoke to McKnight’s Home Care in a Newsmakers podcast.

Episode Notes

The report found that as of early 2023, private equity was behind 5.7%, or about 492, of 8,591 total home health providers. While seemingly small, the actual percentage likely is much higher, given private equity’s lack of transparency, according to Viera. Also, private equity’s presence in highly concentrated markets raises concerns about higher prices, lower quality and less innovation, Moss said. Antitrust regulators need to take notice to curb the spread of these firms in home health, Viera and Moss said.

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