Download eBook for Free

FormatFile SizeNotes
PDF file 1.1 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Healthcare firms regularly seek capital from public and private markets; however, our understanding of their responses to new investors is incomplete. We undertake a novel investigation of ambulatory surgery center (ASC) behavior change following three distinct financial events involving private equity. We show that list prices grow by up to 50% for the same mix of services and that private equity strongly crowds-in physician ownership. Some private insurers avoid private equity owned ASCs, leaving them more reliant on Medicare business. Overall, capital infusions affect the financial engineering of ASCs but typically not treatment styles––though heterogeneity exists across investment sources.

Research conducted by

This research was funded by NIA K01AG061274 and conducted by RAND Health Care.

This report is part of the RAND working paper series. RAND working papers are intended to share researchers' latest findings and to solicit informal peer review. They have been approved for circulation by RAND but may not have been formally edited or peer reviewed.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.