Private equity is not a benign issue in health care. Part of what typifies private equity is its aim of maximizing short-term profitability while minimizing long-term holdings in its own investments. In fact, private equity firms are generally not interested in managing patient panels or personnel or even making service delivery work for patients. They also tend to consolidate markets for health services, undermining competition and driving up costs.
The May issue of AMA Journal of Ethics® (@JournalofEthics) investigates the criteria that should be used to determine whether, when and for whom buying and selling of private equity in health care stands up to ethical, clinical and legal scrutiny. It also considers how to better guide and regulate private equity transactions in health care.
The AMA Journal of Ethics is an editorially independent, peer-reviewed journal devoted to helping students and clinicians navigate ethical decisions in service to patients and communities. The May issue of the journal includes the following articles.
“What Are Physicians’ Duties to Patients When They Sell Their Practices?”
- Private equity companies have no ethical or legal duties to patients and strive to maximize financial returns for their investors.
“Physician Engagement With Private Equity Firms.”
- This article explores AMA Code of Medical Ethics opinions that apply to how private equity investments influence physicians’ practices.
“Should Private Equity Firms Own Residency Slots?”
- Private equity margin maximization and profit-making strategies focus on acquisition, short-term ownership and sale of health care entities, including residency program opportunities.
“How Should We Stop Private Equity Firms From Exploiting Public Health Insurance?”
- Private equity investments in health care have grown to over $750 billion in the past decade and include every segment of the U.S. health sector.
Listen and learn
The journal’s May “Ethics Talk” podcast features a conversation with Robert I. Field, PhD, MPH, professor of health management and policy at the Dornsife School of Public Health at Drexel University, in Philadelphia. He discussed whether and to what extent private equity firms’ increasing presence in health care deserves scrutiny and what policymakers, health professionals and patients should know about responding to private equity ownership stakes in their organizations.
Field also will join Yashaswini Singh, PhD, MPA, May 16 during an AMA Journal of Ethics live webinar exploring what patients and physicians should know about private equity in health care. They also will address whether, and how well, current law can respond to risks that private-equity ownership poses to communities and how to protect public insurance programs. Learn more and register now.
The May issue also features seven author-interview podcasts. Listen to previous episodes of the “Ethics Talk” podcast or subscribe in iTunes or other services.
Also, CME modules drawn from this month’s issue are collected at the AMA Ed Hub™ AMA Journal of Ethics webpage.
The next issue of the journal will focus on embodiment in art practice. Apply to be an AMA Journal of Ethics editorial fellow or senior editorial fellow and design a theme issue with us.
