Senate Visitors Center
Room 203-02, United States Capitol, Washington, DC 20510
Jul 31, 2024
1:00 PM - 2:30 PM (GMT-5)
Host:
Center for Economic Policy and Research and Private Equity Stakeholder Project
The Center for Economic and Policy Research and Private Equity Stakeholder Project invite you to an important panel discussion on Capitol Hill.
RSVP Here
This is a hybrid event, so you have the option to attend online or in-person.
If you’re joining in person, come to:
Senate Visitors Center
Room 203-02
United States Capitol, Washington, DC 20510
Light food and beverages will be provided.
This panel will examine the role that private equity (PE) companies play in the U.S. healthcare system. PE firms invested over $200 billion on healthcare acquisitions in 2021 alone. Where do taxpayer dollars spent on health care go when private equity owns the companies that provide care? Why is it that PE ownership accounted for at least 21% of health care company bankruptcies in 2023? The PE business model differs from the standard profit motive of companies that expect to profitably operate for the foreseeable future. PE firms plan to sell their acquired companies in just 3 to 7 years and employ various tactics to extract as much money as possible. One common PE tactic led to the downfall of the Steward Health Care hospital system in Massachusetts: selling off real estate to enrich PE fund managers while forcing hospitals to pay rent on the property they previously owned. Additionally, lack of transparency about PE and other financial interests behind health care companies makes it difficult for patients to make informed decisions about their care and for policymakers to address concerns about prices and quality of care.
This panel will explore the dynamics of PE involvement in U.S. healthcare along with government policies meant to address key issues. Senator Warren will discuss her recently introduced legislation, the Corporate Crimes Against Health Care Act of 2024. This bill would hold corporate and PE executives accountable with civil and, potentially, criminal penalties. It would claw back ill-gotten gains that enrich such executives and enhance ownership transparency.
U.S. Senator Elizabeth Warren is an honorary co-host of this panel discussion.
Moderator: Brandon Novick | Center for Economic and Policy Research
Remarks by: Senator Elizabeth Warren
Co-Sponsors: Private Equity Stakeholder Project
Panelists
Eileen Applebaum
Title: Co-Director, Center for Economic and Policy Research
Bio: Eileen Appelbaum is Co-Director of the Center for Economic and Policy Research, Washington, DC and Fellow at Rutgers University Center for Women and Work. Prior to joining CEPR, she held positions as Distinguished Professor and Director of the Center for Women and Work at Rutgers University and as Professor of Economics at Temple University. She holds a PhD in economics from the University of Pennsylvania. Dr. Appelbaum’s research focuses on organizational restructuring and outcomes for firms and workers; private equity and financialization; and work-family policies. Private Equity at Work: When Wall Street Manages Main Street, coauthored with Rosemary Batt, was selected by the Academy of Management as one of the four best books of 2014 and 2015, and was a finalist for the 2016 George R. Terry award. Her current research examines the financialization of health care and the roles played by private equity firms and health insurance conglomerates in the delivery of health services. Her recent publications with Rosemary Batt and colleagues document the ways these financial actors enrich themselves at the expense of patients and taxpayers. In the pursuit of profit, these players game health care payment systems, raise prices for services, and skimp on patient care.
Eileen O’Grady
Title: Eileen O’Grady, Director of Programs, Private Equity Stakeholder Project
Bio: Eileen O’Grady is the Director of Programs at the Private Equity Stakeholder Project (PESP). PESP is a nonprofit organization serving as a watchdog of the private equity industry—shining a light on the industry’s impacts, assets, and risks. Before becoming director, Eileen led PESP campaigns and conducted healthcare research. She also has worked for AFSCME, UNITE HERE, the Center for Economic and Policy Research, and AFL-CIO. She has written extensively on issues related to private equity investment in various aspects of the US health care system and broader economy. O’Grady’s research has been featured in The New York Times, The Wall Street Journal, Bloomberg, Marketplace, Los Angeles Times, and other media outlets
Brandon Novick
Title: Brandon Novick, Program Outreach Assistant, Center for Economic and Policy Research
Bio: Brandon Novick is a Program Outreach Assistant for the Domestic Team at the Center for Economic and Policy Research in Washington, D.C.. He has published several pieces on healthcare, such as written comments to federal agencies on market consolidation, an op-ed in The Hill on private equity transparency, and an issue brief on Medicare Advantage. Additionally, he has also researched industry influence and government policy on clinical trials and medical research. Brandon earned a bachelor’s degree in communications, legal institutions, economics, & government (CLEG) and a master’s in political science with a concentration in American politics at American University.
Co-sponsors: United for Respect, Open Markets Institute, and American Economic Liberties Project
