Private equity might dodge state laws by partnering with healthcare nonprofits

Private equity firms are increasingly partnering with healthcare nonprofits to sidestep state regulations, as seen in a joint venture between Compassus, a private equity-backed company, and a nonprofit hospice in Washington state. This strategy allows them to maintain the nonprofit status, which often provides more flexibility and fewer restrictions compared to for-profit entities. Such maneuvers raise concerns about the integrity of nonprofit missions and the potential for prioritizing profit over patient care, highlighting a broader issue about the influence of private equity in the healthcare sector.