Private equity might dodge state laws by partnering with healthcare nonprofits

Private equity firms are increasingly teaming up with healthcare nonprofits to sidestep state regulations that often restrict their direct involvement in the healthcare sector. The recent partnership between Compassus, backed by private equity, and a Washington state nonprofit hospice exemplifies this trend. This move raises questions about the implications for patient care, cost control, and the integrity of nonprofit missions. Such arrangements could undermine state oversight and lead to conflicts of interest, impacting both healthcare quality and financial transparency.