Massachusetts Law Signals Heightened State Scrutiny of Private Equity in Health Care
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Jan 31, 2025
Massachusetts Gov. Maura Healey (D) this month signed a bill into law that places more scrutiny on private equity investments in health care, joining other states and the federal government in examining PE’s role in the industry. The legislation primarily will impact health care providers, but attorneys and analysts tell AIS Health it could also affect payer transactions, particularly those involving insurers buying provider groups. They also say the law could indirectly impact insurers during reimbursement negotiations with hospitals and other physician groups, as research has found PE-backed providers often extract significantly higher rates than independent physician practices.
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