Massachusetts Democratic Senator Elizabeth Warren warned today that private equity funds are putting people’s health and lives at risk.
Warren presided over a Senate hearing on the financial sector.
He claimed that the massive acquisition of medical facilities, from clinics to nursing homes, degraded the quality of care and killed 20,000 people in nursing homes.
To demonstrate some of the effects, the Senator took Peggy Malone, a 32-year-old nurse, to Crozer Chester Medical Center in Upland, Pennsylvania.
When private equity fund Leonard Green & Partners acquired Crozer-Chester, nurses claimed to have fewer staff and health professionals were unable to get care.
“The quality of care has deteriorated and our hospital has been kept from collapsing with the willingness of nurses and health care professionals to keep the ball rolling,” Malone said.
Employee and patient experiences with acquisitions are not uncommon, said Eileen Aperbaum, co-director of the senator’s Center for Economic Policy Research.
Appelbaum provides medical care to emergency room doctors, privately, and collects astronomical payments from patients treated by these doctors for consumers and patient advocates with surprising claims. There was concern between them.
Buyers of private equity funds have benefited from rising prices from patients and private insurers, economists say. The right to view invoices sent on your behalf.
As an example of the significant presence of private capital in healthcare, Applebaum said that Envision Healthcare and TeamHealth, the largest emergency medicine and anesthesia companies, were acquired by KKR.
and the Blackstone Group
It handles 30% of the overseas market for emergency physicians and employs approximately 90,000 medical specialists across various functions.
He said KKR and Blackstone relied on high medical costs and staggering medical costs to generate enough revenue to cover billions in debt.
In the hearing, Senator Warren said that the negative effects of private equity funds outweighed health care, arguing that negative effects could be seen throughout the industry.
“When private equity funds start buying local businesses, communities are often at a loss.”
Last year Warren used the session to reintroduce the Stopwall Street looting method to address a shortage of private capital, where dry dust is worth $746 billion.
First proposed in July 2019, the law prohibits dividends from investors and outsourcing for two years after the company was acquired. This provision aims to stop the extraction of resources from the acquired companies and increase their chances of success.
The bill also requires private equity managers to disclose fees, returns, and other information about their funds so investors can monitor their investments and make purchases.
In addition, the law protects employees in the event of a legal company bankruptcy.
Two experts from conservative think tanks, President Douglas Holz-Ikin of the American Action Forum, and David Burton, Senior Economic Policy Fellow at the Heritage Foundation, said Warren’s bill would be disastrous for the economy.
According to Holtz-Eakin, the bill would increase investor profits from $671 million to $3.36 billion per year and lose 6.9 million to 26.3 million jobs (about half of which would be retired from pension funds). it will be lost) and high taxes will be imposed. Revenue from the municipality, state government and federal government.
Burton of the Heritage Foundation calls it an “incompetent company protection law” that makes it nearly impossible to take over and replace a bankrupt company, and is certainly economically unattractive. He insisted on building a moat and a high wall around it.
At the hearing, Tom Quadman, vice president of the Center for Capital Markets Competitiveness at the US Chamber of Commerce, said the legislation would increase new financial debt from investors, ban investor dividends and amend bankruptcy laws. And about the capital gains from transfers that would prevent private equity funds from investing in job creation and warned that they needed other restrictions such as tax increases.