The top five states on the PE Risk Index are New Mexico at No. 1, followed by North Carolina, Arizona, Florida and Nevada. Other healthcare inputs used by the calculator include share of hospitals and nursing homes controlled by PE, related readmission rates, and average CMS star rating. Physician specialty market share was gathered from a 2023 American Antitrust Institute report, which found that PE ownership was associated with an 8.2% price increase in radiology.
PESP notes that the private equity industry has seen substantial growth. As of 2004, the field controlled about $1 trillion in assets, but that number has increased to over $13 trillion as of today. PE interest has risen in radiology, too, with investors acquiring 257 imaging practice sites as of 2021, according to research published last month in Health Affairs. Across the specialty, 15 private equity firms hold market shares greater than 30% in their service area, at an average of 48%. Four PE firms, meanwhile, hold market shares greater than 50% in radiology, controlling an average of almost 71% in the given geography, according to the study.
“By providing transparent data on the risks associated with private equity investments, we empower communities, working families, and policymakers to advocate for change and protect their states from the threats posed by unchecked private equity firms,” Chris Noble, policy director at PESP, said in the announcement.
For a counter perspective, you can read about a recent video opinion piece from private equity-backed industry giant Radiology Partners, detailing some of the myths and benefits of PE support.
U.S. Sen. Gary Peters, D-Mich., also recently announced his intent to investigate how PE firms are impacting emergency medicine.