As states tighten oversight, private equity’s healthcare deals decline

New state oversight laws are correlating with a decline in private equity healthcare deals, according to a Pitchbook report, with deal value in early 2026 lower than the same period last year. At least 25 states have proposed or passed laws increasing scrutiny of healthcare transactions, with California, Oregon and Rhode Island implementing new transparency requirements this year.

Physician practice management, where private equity has its largest footprint, is on track for deals to decline by half compared to 2025. Rhode Island's attorney general said the new rules exist because consolidation drives up costs and limits patient access, and Connecticut passed what may be the country's strongest nursing home transparency law.

Private equity has spent $1 trillion acquiring healthcare companies over the past decade, with defenders arguing the investment fills capital gaps. But research cited includes a 2023 study finding an 11% increase in nursing home deaths tied to private equity ownership, and a 2022 Moody's report finding nearly 90% of financially stressed healthcare companies are private equity-owned.

The full dispatch is available from the source below.