alt Hacker NewsWe already know that Private Equity kills people in the hospitals [1] and nursing homes [2] for profit. So why do we continue to allow them to operate Healthcare facilities?
[1] https://jamanetwork.com/journals/jama/fullarticle/2813379
Replies
Because we have governments anemic to running anything or regulating any business.
They are much more likely to continue shoveling cash into private businesses through subsidies then to want to setup and/or run the same business for a fraction of the cost.
> why do we continue to allow them to operate Healthcare facilities?
We don’t want to pay for them. When private equity is forced to sell, someone has to buy or the providers get shuttered.
On the other hand, we’re clearly willing to blow the money and deficit on stupid stuff. But only if it goes boom, apparently.
Private equity's destruction goes FAR beyond hospitals, nursing homes and vets:
Healthcare
- Nursing homes / skilled nursing facilities
- Hospitals (especially rural)
- Physician practices (emergency medicine, anesthesiology, radiology, dermatology, ophthalmology)
- Dental practices (DSOs - Dental Service Organizations)
- Veterinary clinics
- Hospice care
- Addiction treatment centers
- Behavioral health facilities
- Physical therapy clinics
- Urgent care centers
- Home health agencies
- Air ambulance services
- Ambulance companies
- Medical staffing agencies
- Dialysis centers
Retail
- Toys R Us
- Sears / Kmart
- Payless ShoeSource
- Shopko
- Sports Authority
- Gymboree
- Charlotte Russe
- Brookstone
- Grocery chains (Albertsons, Safeway, etc.)
- Pet stores (Petco, PetSmart)
Housing & Real Estate
- Single-family rental homes
- Apartment buildings
- Mobile home parks
- Student housing
- Senior living facilities
Food & Restaurants
- Casual dining chains (Red Lobster, Olive Garden era)
- Fast food franchises
- Local restaurant roll-ups
- Food distribution (Sysco model)
Media & Entertainment
- Local newspapers
- Radio stations (iHeartMedia/Clear Channel)
- Movie theaters
- Music venues
Essential Services
- Water utilities
- Waste management
- Ambulance services
- Funeral homes
- Cemeteries
Home Services
- HVAC companies
- Plumbing services
- Pest control
- Security systems
- Moving companies
Financial Services
- Payday lenders
- Check cashing stores
- Debt collection agencies
- Insurance agencies
Education
- For-profit colleges
- Childcare centers
- Test prep companies
- Tutoring centers
Transportation
- Auto dealerships
- Car washes
- Parking garages
- Toll roads
Technology & Software
- Enterprise software (forced subscriptions)
- SaaS companies (acquisition then price increases)
Prisons & Justice
- Private prisons
- Probation services
- Electronic monitoring
Veterinary & Pet Care
- Veterinary hospitals
- Pet boarding facilities
- Pet grooming chains
Common Pattern: Take essential service → Load with debt → Cut staff/quality → Raise prices → Extract fees → Bankruptcy or sell before
collapse → Taxpayers/communities absorb the damage
The playbook: Buy with 10% equity, 90% debt → Fire workers → Sell real estate, lease it back → Cut quality → Raise prices → Pay
themselves "management fees" → Company collapses with debt → PE walks away with 3-5x returnsBecause between the 1970s and 1990s, Western nations decided that private operations should be the default for everything except where the law specifically requires state institutions, instead of the other way round.
In many countries, essential services like hospitals, drinking water supply, airport security, schools, even prisons are now partially or fully privatized. It seems insane when you think about it, but that’s what your grandparents voted for.
Had a creepy interaction with Fraser. They absolutely did a marketing spiel and sounded nothing like a medical intervention.
When you review the findings on the standard behavioral intervention, autism, on average requires 2.5 years of 40hr/week.
Thats basically one persons job.
Releasing an almost-3,000-page expose on private equity this week.
It's hard to argue against those who say private equity ruins everything. It's astonishing. And massively depressing.
You can download for free when you search the 'net for Founderstowne.