What Happened After Private Equity Bought A Hospital?

Private equity in healthcare has faced substantial criticism, recently fueled by the bankruptcy of Steward Health, a hospital chain once owned by a private equity firm. In response, several states have passed—or are considering—laws to restrict private equity’s involvement in healthcare. But a new study published in the Journal of Financial Economics offers a more nuanced picture.

Three finance professors conducted the most comprehensive and rigorous analysis of private equity’s…