Steward Health Care quickly became a lesson for healthcare leaders about what can happen when private equity (PE) controls a system. Chris Wilson, a partner and co-chair in law firm Goodwin’s Healthcare PE group, told Healthcare Brew he still sees a place for PE in healthcare. Purchasing a struggling hospital or health system is difficult and expensive, he said, which can make it challenging to turn investments into successes. “Private equity firms tend to be mislabeled as being a capital source for providers that are myopically focused on generating return for their investors,” he said. "When you have situations, as we’ve been seeing this year, where you have the potential for less governmental funding going into hospitals and health systems,” he added, “that increases the importance of the role of private capital in fueling innovation in healthcare.”
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