Private equity firms are specializing in buying hospice companies, maximizing their profits and then selling them at high prices. These businesses are changing the ways that hospices in Texas are being managed today and in the future.
Private equity firms are changing health care
More private equity companies are interested in the hospice sector of the health care industry. Since 2012, the number of hospice businesses being bought and owned by private firms has tripled.
Private equity buyers are noticing that more people are living longer and receiving government health care payments. Professionals who work at hospice businesses have fewer duties than those who work in hospitals, clinics and long-term care facilities. There is always a significant need for hospice services, and buyers can earn passive income from their investments.
Hospice business rules and regulations
In Texas, a number of companies have acquired hospice providers for profit. These acquisitions have changed the requirements for enrolling and managing patients in some businesses. Some hospice owners have more difficulty managing medical records, ordering equipment and fulfilling other duties. Along with the increased acquisitions, the state’s hospice laws must be followed by all investors and facility owners.
Private equity claims in the hospice sector
Private equity firms have acquired three out of five hospice businesses in the U.S. In general, older people are living longer and dying more slowly due to advanced medical treatments. Today, the industry of death and dying is being changed by big business mergers and acquisitions. These private equity firms still need to make sure that their acquisitions deliver the necessary care and serve patients, not just earn investors a profit.