Healthscope: The Private Equity Fail For Hospitals
Private equity investments are bad for health. These American style investments are incredibly unhealthy for the vehicles they, often, drive into the ground. Healthscope: The private equity fail for hospitals in Australia. What private equity does is saddle the thing that they buy with all the debt raised to purchase it in the first place. Then, it liquidates whatever juicy assets in the possession of the targeted investment vehicle. In this case, it was selling all the real estate upon which these dozens of private hospitals reside. This raised billions for the private equity firm. Following this all the hospitals had to pay commercial rents to the new owners of the land. Making operating the businesses more expensive.Continue Reading