Financial News reported on a Barron's interview with Carlyle Group co-founder David Rubenstein. Rubenstein shared where he sees investment opportunities:
Right now, at Carlyle, an enormous percentage of our investments go into healthcare, not only in the US, but also around the world. It is one of the fastest-growing and likely most stable areas of economic growth. When I worked in the White House in the late 1970s, 7% to 8% of US GDP was in healthcare. Today, it’s roughly 20%.
Helping to make healthcare more expensive are former Medicare Chiefs, now employed by private equity, and elected officials with private equity ties and huge healthcare investments.
David Rubenstein's family office Declaration Partners is also big into healthcare. Not winning in all this is the average citizen. The greed and leverage boys have a long history of predatory behavior and destroying healthcare providers' intrinsic motivation.
The crapification of healthcare will continue and citizens will pay dearly for it.
Politicians Red and Blue love PEU (private equity underwriters) and increasingly, more are one.
Update 12-14-22: Numerous digital health firms share user information with advertisers. The greed and leverage boys are betting big on healthcare and expect to make money multiple ways.
Update 12-15-22: Andrew Park identified PEU owned healthcare firms that had their debt downgraded. He wrote on Twitter:
What a disaster when private equity firms try to operate healthcare companies and squeeze their patients for money.
Update 1-5-23: Matt Stoller's BIG takes on the PEU boys and the damage they do to corporations, especially in the healthcare arena. This blog chronicled KKR's bleeding of hospital giant HCA and The Carlyle Group's driving nursing home giant ManorCare into bankruptcy. Greed harms a lot of people.
Update 3-27-23: The U.S. has long not gotten its money's worth for healthcare. Life expectancy continues to decline.
Update 3-30-23: Carlyle is using Atmas Health to bid on Medtronic's patient monitoring and respiratory interventions businesses.
Update 5-9-23: Primary care practices remain a prime target of the PEU boys. They'll ruin medicine too.
Update 8-2-24: Thoughtful Money's Adam Taggart referred to "crapification" imposed by private equity owners in an interview with noted author Gretchen Morgenson. She provided a number of PEU cases where owners won but employees, customers and nearly everyone else lost.
