Private Equity Firms Target Medical Practices in Rhode Island

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A Rhode Island physician is raising concerns about private equity firms quietly acquiring medical practices in the state, arguing this trend could negatively impact patient care and local control of healthcare services.

Why it matters

The increasing consolidation of medical practices under private equity ownership raises questions about the motivations and priorities of these investors, who may prioritize profits over quality of care. This trend could reduce competition, limit patient choice, and make healthcare less accessible for Rhode Island residents.

The details

Dr. Howard Schulman, a Rhode Island doctor, warns that private equity firms have been discreetly purchasing medical practices in the state, a trend he says could undermine patient care and local control of healthcare. Schulman previously raised concerns about Steward Health Care's attempted takeover of Landmark Hospital 14 years ago, a deal that was eventually blocked. However, another private equity firm did succeed in acquiring Roger Williams Medical Center and Fatima Hospital, a transaction from which the community is still recovering.

• Schulman wrote an opinion piece for The Providence Journal 14 years ago expressing concerns about private equity's involvement in Rhode Island healthcare.
• Private equity firms have been quietly purchasing medical practices in Rhode Island in recent years.

What they’re saying

What’s next

Schulman and other healthcare advocates in Rhode Island will likely continue to monitor and speak out against the growing trend of private equity firms acquiring local medical practices, in an effort to maintain community control and patient-centered care.