Private equity tied to 21% of healthcare bankruptcies for second consecutive year
Newly released research shows private equity firms were linked to more than half of the bankruptcies filed by large corporations in 2024. In healthcare, the number of those filings is higher than most sectors of the economy, second to only consumer discretionary retail.
According to a report from the nonprofit watchdog Private Equity Stakeholder Project (PESP), 56% of large corporate bankruptcies in all industries had a history of private equity ownership. “Large,” in this context, refers to entities with liabilities exceeding $500 million. Of the eight such filings in healthcare last year, seven companies had a history of private equity ownership.
Further, the number of healthcare bankruptcies linked to private equity exceeded those in the broader economy. While 11% of all-sector filings were from organizations with a history of ownership by investment firms, that number rises to 21% for healthcare.
PESP stated these numbers demonstrate private equity bankruptcies have not decreased. In fact, the group noted, the 21% figure is consistent with what was observed in 2023.
“As private equity’s footprint continues to grow in nearly every sector of the economy, the industry’s role in over half of large bankruptcies raises pressing questions for policymakers, investors and consumers,” Valentina Dabos, senior campaign and research coordinator at PESP, said in a statement.
“In healthcare, the consequences can be life-altering. Bankruptcy-driven closures or cost-cutting measures leave patients without reliable access to care, disrupting treatment plans and jeopardizing lives,” she added.
In its report, PESP added that these bankruptcies have resulted in some 65,850 layoffs across all industries. The research remains ongoing and was released as part of the launch of PESP’s private equity tracker, which keeps a running list of associated bankruptcies.
The new report and tracker can be found here.
Despite analysis from early last year—including from PitchBook—that revealed a decline in private equity’s overall interest in healthcare, data from PESP, first released in October 2024, found that firms are still attracted to certain specialties, mainly at-home care, physical therapy centers and nursing homes. The group said there are more bankruptcies for healthcare on the calendar in 2025.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.