Peter Gates and Dan Shoenholz write for peHUB
EY-Parthenon Executive Advisor Peter Gates and Managing Director and Co-head of Health Care Dan Shoenholz explore the findings of an EY-Parthenon survey of more than 80 health care executives in the peHUB article, “Forming a healthy relationship between PE and health care.”
The article highlights key survey findings, including that PE investment does boost health care organizations’ value beyond financial performance. The survey also revealed that companies that had taken PE investment outperformed their peers in areas such as capital allocation, strategic planning and organizational development.
While a relationship between PE and health care can be beneficial, the authors note there is need for education and awareness, based on apprehension and sentiment held by different involved parties, including the health care executives themselves, as well as physicians.
“We believe that clear understanding of each party’s perspectives is vital,” they explain. “Our survey shows most partnerships between private equity and health care executives lead to successful outcomes.”
And, as aging populations lead to rapid growth in health care and as innovations increasingly disrupt current clinical models, the health care market will continue to attract PE investors. As the survey indicates, PE produces successful outcomes for investor, company and patient alike.
Learn more about the relationship between PE and health care in the EY-Parthenon Perspective, Can private equity be an effective provider to health care companies?
Leadership from EY-Parthenon explored the topic further at the McDermott Will & Emery and EY Health Care Panels. Learn more about the event.