Private equity's influence under the microscope: State, federal lawmakers take a closer look at healthcare and technology investments.

Individual investors; Private equity funds; Institutional investors; Private equity; Legislators; Venture capital; Microscopes; Investors

Regulators and lawmakers are closely examining private equity investments in healthcare and technology industries. Concerns have been raised about rising prices and consolidation in healthcare due to private equity investment, while federal legislators are investigating private equity and venture capital support of tech companies, particularly those in adversarial nations like China. These efforts may restrict where private equity funds can invest and raise fiduciary concerns for institutional investors. Multiple states, including California, Illinois, Pennsylvania, New York, Rhode Island, and Oregon, are seeking to monitor and potentially limit consolidation and price increases in healthcare. Additionally, federal investigations are underway to understand the impact of private equity on healthcare. Policymakers cite research showing negative patient outcomes when private equity is involved in healthcare. Private equity has invested over $1 trillion in the healthcare industry in the past decade, and a study shows that in 13% of metropolitan areas, a single private equity firm owns more than half of the physician market for certain specialties. In the technology sector, policymakers are also aiming to limit venture capital and private equity activity in critical technologies such as semiconductors, artificial intelligence, and surveillance. Efforts have already been made to cut off American funding to foreign companies deemed adversarial to U.S. interests. The House Select Committee on the Chinese Communist Party has adopted policy recommendations to address national security concerns related to venture capital and private equity investments in Chinese companies working on critical technologies. The committee aims to limit the flow of American money into these companies. The report suggests that private [Extracted from the article]

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