Private Equity Fuels 870 Medical Device Manufacturers

Over the last decade, private equity firms have invested over $125 billion in more than 870 medical device manufacturers. These investments have enabled these companies to expand, innovate, and bring critical medical devices to market, which in turn improves surgical outcomes and recovery times for patients. On average, $54 million is required for research and development to launch a new complex medical device, with costs soaring to $522 million when including failed projects. Without private equity funding, many transformative medical technologies might not reach the patients who need them most.

Private Equity Invested $15 Billion to Improve Health Care in Rural Communities

Private equity is playing a critical role in enhancing health care access in rural America by investing $15 billion in over 250 urgent care clinics. This investment comes at a critical time, as over 130 rural hospitals closed between 2010 and 2021, and many areas face a shortage of primary care physicians. By supporting urgent care centers, private equity helps provide necessary health services closer to home for rural residents and reduces strain on the few remaining hospitals.

Watch Sarah Arora, Chief Growth Officer of GoHealth Urgent Care, discuss how Private Equity Supports Health Care in Rural and Underserved Areas.

Private Equity Powers Lifesaving Innovation

Over the last decade, private equity has invested more than $123 billion into pharmaceutical companies, fueling the development of vital treatments for a range of serious and chronic conditions, including leukemia, Alzheimer’s, Parkinson’s, heart disease, HIV, and various cancers, as well as arthritis, diabetes, and ulcerative colitis. Developing new medicines is a lengthy and costly endeavor, often taking up to 15 years and $2.6 billion. Private equity aids in reducing costs and speeding up development by funding both innovative and generic drug manufacturers, helping bring crucial treatments to market more efficiently.

Watch how private equity helped Anthos Therapeutics prevent blood clots.

Private Equity Improves Physician Practices and Patient Experiences

Private equity has played a key role in providing medical practices with capital to strengthen services by allowing health care providers to spend more time caring for patients and less on paperwork. Research from Johns Hopkins University, Harvard Medical School, and the University of Oregon shows that private equity-backed doctors and nurses spend more time with their patients. According to the Medicare Payment Advisory Commission (MedPAC), medical providers note that private equity can “improve quality of care because physicians no longer need to focus on running a business.”

Watch how private equity helped Grape Tree Medical Staffing meet increasing demand for nurses in rural Iowa.

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