Participation of Private Equity Firms in Healthcare: Good or Bad?

Top private equity firms are investing a huge amount of money in the Indian healthcare sector ranging from health technology startups to physician practices. While private investment helps improve in health care through new delivery models, technologies, and operational capabilities, there is another side to it - whether private equity investments in healthcare is good or not for the patients and communities.
The healthcare sector has been a preferred destination for Private equity firms in India. And amidst the ongoing COVI-19 pandemic, its significance has increases manifolds. There are a lot of opportunities for hospitals, doctors, and other healthcare service providers to improve productivity and reduce cost, which can mean huge benefits for private equity firms. Further, private investment in the Indian health care industry has surged significantly over the last few years owning to investors who have been keen on stepping into a large, swiftly growing, and recession-proof market with high returns. Top private equity firms in India will benefit most by acknowledging the health care system’s needs and by adding true value to our health system i.e. giving high-quality services at affordable prices and exterminating waste. Investors trying to maximize their short-term profits by raising costs without adding any real healthcare benefits are likely to find that those strategies are unsustainable.