Bass, Berry & Sims attorney Angela Humphreys contributed insights to an article in Modern Healthcare examining recent legislation and other ongoing attempts to restrict private equity investment in the healthcare industry.
Speaking about concerns private equity investors have when it comes to the healthcare industry, Angela noted that proposed reporting requirements could involve sensitive details that aren’t typically disclosed by private operations. She estimated complying with the reporting requirements in some states could add tens of thousands of dollars to a transaction cost — and potentially balloon to hundreds of thousands of dollars if multiple states are involved. The additional costs could make companies less willing to invest in certain states, though Angela said she has yet to see a company walk away from a deal for that reason.
The full article, “States Revive Efforts to Restrict Private Equity Transactions,” was published by Modern Healthcare on February 12 and is available online, subscription required.