For critics of the private equity industry, Blackstone’s ability to extract so much money out of Apria is an example of how the profits flowing to private equity owners are disconnected from the realities of how the businesses are run. Private equity firms have been increasingly active in the U.S. health-care industry in the past decade, buying up hospitals, outpatient care facilities and physician staffing companies, among other investments. Private equity investments in health care reached over $190 billion in more than 1,200 deals in 2019, according to Pitchbook, and made up 14 percent of the value of all private equity deals that year, up from less than 9 percent in 2009. The competitive bidding program, which Medicare has implemented over the past decade, has helped cut average prices for covered equipment by 36 percent, according to research by Harvard graduate student Yunan Ji. The decision means that Apria and other providers will continue to be paid higher Medicare reimbursement rates for the machines.

Source: Washington Post March 01, 2021 12:01 UTC