PESP response to industry claims about medical debt

The Private Equity Stakeholder Project (PESP) asserts that private equity is deeply integrated into the U.S. medical debt crisis, which affects 14 million people and totals at least $220 billion. PESP identifies 113 private equity-owned revenue cycle management (RCM) companies, representing 28.5% of a comprehensive industry list, and argues that these firms profit from high-interest medical credit cards and aggressive debt collection. The document refutes claims by the American Investment Council (AIC) that private equity investment in RCM is limited, citing contradictions in AIC's own data and evidence of majority equity investments in providers like AccessOne. Furthermore, the text cites multiple academic studies from 2020 to 2023 indicating that private equity ownership in hospitals, nursing homes, and physician practices is associated with increased patient costs and higher charges for services.

• The U.S. medical debt crisis is a nationwide market failure that impacts 14 million people and totals at least $220 billion.
• Private equity has a significant presence in the revenue cycle management (RCM) sector, with PESP identifying 113 private equity-owned companies providing these services, which constitutes 28.5% of the companies listed by Beckers Hospital Review.
• Private equity-owned RCM companies contribute to medical debt by providing medical credit cards with high interest payments and employing aggressive debt collection tactics that may violate the law.
• The American Investment Council (AIC) claims private equity investments in RCM are "limited," but PESP notes the AIC represents only about 120 members compared to more than 18,000 private equity funds existing in 2021.
• Evidence contradicts the AIC's description of the investment in AccessOne as "non-controlling," as AccessOne announced a majority equity investment from Frontier Growth in 2017 and has Frontier Growth partners on its board.
• Multiple studies indicate that private equity ownership in healthcare leads to higher costs; for example, a 2021 NBER paper found bills are more than 10 percent higher at private equity-owned nursing homes, and a 2023 Journal of Health Economics study found charges at ambulatory surgery centers increased approximately 50% above baseline levels 4 to 5 years after investment.

APA

Private Equity Stakeholder Project (2024). PESP response to industry claims about medical debt. https://pestakeholder.org/news/pesp-response-to-industry-claims-about-medical-debt/

Chicago

Private Equity Stakeholder Project. PESP response to industry claims about medical debt. 2024. https://pestakeholder.org/news/pesp-response-to-industry-claims-about-medical-debt/.

Wikipedia

{{cite press release |author=Private Equity Stakeholder Project |title=PESP response to industry claims about medical debt |date=11 December 2024 |url=https://pestakeholder.org/news/pesp-response-to-industry-claims-about-medical-debt/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{privateequitystakeholderproject2024pesp, author = {{Private Equity Stakeholder Project}}, title = {{PESP response to industry claims about medical debt}}, publisher = {Private Equity Stakeholder Project}, year = {2024}, month = dec, url = {https://pestakeholder.org/news/pesp-response-to-industry-claims-about-medical-debt/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }