Private equity might dodge state laws by partnering with healthcare nonprofits

The partnership between a private equity-backed company, Compassus, and a nonprofit hospice in Washington state highlights a potential strategy to bypass state regulations that often restrict private equity involvement in healthcare. This "joint venture" has raised eyebrows as it could allow private equity to maintain influence in the sector while claiming nonprofit status. The move underscores broader concerns about private equity's growing role in healthcare and the potential implications for patient care and local healthcare systems. This shift could prompt states to re-evaluate their regulations to ensure that profit-driven entities don't undermine the mission-driven nature of nonprofit healthcare providers.