Testimony – Private Equity Stakeholder Project

The Private Equity Stakeholder Project (PESP) testified in support of Maine's LD 985 (SP 416), arguing that a moratorium on private equity ownership of hospitals is necessary to protect health systems from extractive investment practices. PESP highlights that private equity has invested over $1 trillion in US healthcare over the last decade, leading to horizontal consolidation across various medical specialties. The organization claims these practices include looting safety net hospitals, stripping real estate, and cutting less profitable services. Furthermore, PESP notes a high correlation between private equity ownership and healthcare bankruptcies, stating that 21% of healthcare bankruptcies in 2024 involved private equity-owned companies.

• Private equity has significantly increased its presence in the US healthcare sector, investing more than $1 trillion over the last ten years. In 2021, the industry reached a peak of 515 healthcare buyouts with a total value of $151 billion.
• Private equity is driving horizontal consolidation across a wide range of healthcare services, including primary care, emergency medicine, eye care, gastroenterology, durable medical equipment, anesthesiology, dental care, fertility clinics, methadone treatment centers, and air ambulances.
• The document alleges that private equity firms employ harmful tactics in healthcare consolidation, such as stripping valuable real estate, looting safety net hospitals, cutting services that are less profitable, and exploiting government funding programs intended for healthcare stability.
• There is a strong link between private equity ownership and bankruptcy within the healthcare industry. In 2024, 21% of healthcare bankruptcies involved private equity-owned firms, and 88% of the largest bankruptcies (those with liabilities exceeding $500 million) were at companies with a history of private equity ownership.

APA

Noble, C. (2025). Testimony – Private Equity Stakeholder Project. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2025/06/5-22-25-ME-LD-985-SP-416-Testimony-PESP.pdf

Chicago

Noble, Chris. Testimony – Private Equity Stakeholder Project. Private Equity Stakeholder Project, 2025. https://pestakeholder.org/wp-content/uploads/2025/06/5-22-25-ME-LD-985-SP-416-Testimony-PESP.pdf.

Wikipedia

{{cite press release |last1=Noble |first1=Chris |title=Testimony – Private Equity Stakeholder Project |publisher=Private Equity Stakeholder Project |date=22 May 2025 |url=https://pestakeholder.org/wp-content/uploads/2025/06/5-22-25-ME-LD-985-SP-416-Testimony-PESP.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{noble2025testimony, author = {Noble, Chris}, title = {{Testimony – Private Equity Stakeholder Project}}, publisher = {Private Equity Stakeholder Project}, year = {2025}, month = may, url = {https://pestakeholder.org/wp-content/uploads/2025/06/5-22-25-ME-LD-985-SP-416-Testimony-PESP.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }