Private Equity’s Footprint in Philadelphia Healthcare

The report identifies approximately 900 private equity-owned healthcare locations in the Greater Philadelphia area, with significant concentrations in physical therapy, behavioral health, dental care, and home health services. It argues that private equity's 'roll-up' strategies and debt-funded dividend extractions increase the risk of bankruptcy, reduce quality of care, and drive up costs for patients. The document details specific local examples, such as the closure of Hahnemann University Hospital and the financial decline of Crozer Health, while calling for increased federal and state regulatory oversight of healthcare acquisitions.

• The report identifies approximately 900 private equity-owned healthcare provider locations in the Greater Philadelphia area, though this is likely an undercount because firms are not required to disclose holdings publicly.
• Physical therapy is the most widespread service in the sample, with at least six private equity-owned companies operating 271 locations. Ivy Rehab has the highest regional presence with 145 locations.
• Behavioral health services in the region include 98 locations across 12 companies. LifeStance Health is the largest operator with 30 locations in the Philadelphia region.
• Private equity ownership in dental care includes 86 locations across six companies, with Dental Care Alliance operating at least 25 locations in the region.
• The report identifies 85 locations for home health and hospice providers across 15 companies, noting that these figures may be understated as some locations serve as central offices for entire counties.
• Urgent care growth is significant, with 50 locations in the Philadelphia area operated by three private equity-owned companies, including American Family Care (30 sites) and Vybe Urgent Care (15 clinics).
• Private equity market share for physician practices in the Delaware Valley and surrounding Philadelphia areas commonly exceeds 30%.
• Private equity investment has been linked to the closure of Hahnemann University Hospital in 2019, the first closure of a major urban hospital in the U.S., following the bankruptcy of its parent company.
• The hospital system Crozer Health suffered financial decline and layoffs after its former owner, Leonard Green & Partners, extracted hundreds of millions in dividends and fees while loading the system with debt.
• Private equity firms use 'roll-up' strategies—the serial acquisition of smaller medical businesses by larger platform companies—which federal regulators state can unfairly reduce competition and harm patients.
• The report highlights the risk of 'debt-funded dividends,' where debt is loaded onto a company to pay owners, potentially leading to credit downgrades, as seen with Aspen Dental and Athletico Physical Therapy.

APA

Private Equity Stakeholder Project (2024). Private Equity’s Footprint in Philadelphia Healthcare. https://pestakeholder.org/reports/private-equity-in-philadelphia/

Chicago

Private Equity Stakeholder Project. Private Equity’s Footprint in Philadelphia Healthcare. 2024. https://pestakeholder.org/reports/private-equity-in-philadelphia/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Private Equity’s Footprint in Philadelphia Healthcare |date=29 October 2024 |url=https://pestakeholder.org/reports/private-equity-in-philadelphia/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2024private, author = {{Private Equity Stakeholder Project}}, title = {{Private Equity’s Footprint in Philadelphia Healthcare}}, institution = {Private Equity Stakeholder Project}, year = {2024}, month = oct, url = {https://pestakeholder.org/reports/private-equity-in-philadelphia/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }