Private equity firms have quietly acquired an estimated 25% of US veterinary clinics, 20% of dental practices, and a significant share of emergency rooms, dermatology practices, and fertility clinics over the past decade. The trend has accelerated since 2020, and a growing body of academic research is documenting concerning effects on American patients and pet owners.
The business model is consistent across sectors. PE firms acquire multiple small practices, consolidate them into regional platforms, implement standardized pricing and cost controls, and sell the combined entity for a multiple of its consolidated earnings 5-7 years later. The strategy generates strong financial returns — typically 3-5x invested capital — but research suggests it does so partly by extracting value from patients rather than creating it.
A Harvard Medical School study found that hospitals acquired by PE firms experienced a 25% increase in adverse events, a 27% increase in falls, and significantly higher infection rates compared to matched control hospitals. Prices at PE-acquired ERs were 14% higher than independent ERs serving comparable patient populations.
For American consumers, the challenge is that PE ownership is often invisible. Your dentist's office may look the same but be owned by a private equity fund headquartered in New York. The FTC is now scrutinizing healthcare PE rollups more aggressively and has blocked several proposed acquisitions in the past 18 months.
