In an article published by Modern Healthcare on September 6, 2022, Chet Hosch was quoted about the rising interest in specialty physician practices by private equity investors and the perceptions related to the impact on patient care when PE firms buy a practice.

While the scrutiny associated with private equity investments in health care is understandable, Hosch said that these deals can improve patient care. Notably, firms are not as constrained by quarterly profits and can make necessary infrastructure and technology investments. In fact, he noted that private equity firms investing in health care generally expect to see returns on investments in three to five years.

“The perception is – and I don’t think it’s fair – but the perception is that private equity will always sacrifice patient care for profit,” Hosch said. “I think both of those things can be served, and I think they’re enhanced in private equity anyway because they can take the long-term.”

Hosch added that the competition in the sector will continue among private equity firms and other types of investors, and demand for health care deals will continue to outpace other areas of the market – especially given the increased opportunities to use technology and artificial intelligence for patient care and more seamless monetization.

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