In the ever-complex world of healthcare, where the well-being of patients should always come first, it is alarming to see private equity (PE) firms like The Carlyle Group making their foray into this vital sector.
Coined as the Supreme Ruler of the Private Equity Kingdom by Business Insider, The Carlyle Group, with its notorious ties to political elites and a history steeped in controversy, has recently acquired the Kidney Care business unit of Baxter International, raising significant concerns about the future of patient care under its stewardship.
This acquisition is a stark reminder of the growing and deeply troubling trend of private equity firms exploiting healthcare for profit, often at the expense of patients and healthcare workers.
The Carlyle Group: A History of Controversy
The Carlyle Group has long been a subject of controversy, with its deep connections to powerful political families like the Bushes and its shadowy involvement in various industries that have raised more than a few eyebrows.
One of the most notable controversies surrounding Carlyle is its alleged involvement in conspiracy theories linked to 9/11, where its close ties to defense contractors led to questions about conflicts of interest.
In particular, the Bin Laden family liquidated its holdings in Carlyle’s funds in October 2001, just after the September 11 attacks, when the connection of their family name to the Carlyle Group’s name became impolitic.
While these theories remain speculative, the overarching concern is that Carlyle’s interests are more aligned with profit maximization than with the public good.
Now, this same company that invests in advanced military technology and weapons designed to kill people, has been venturing into healthcare—a sector where saving people is the goal. The very idea of a private equity firm, driven by the relentless pursuit of profits, controlling a critical healthcare service is deeply unsettling.
Private Equity and Healthcare: A Dangerous Mix
Private equity firms like Carlyle operate with one primary goal: to generate the highest possible return on investment for their shareholders. This often leads to aggressive cost-cutting measures, workforce reductions, and a prioritization of short-term gains over long-term sustainability.
When applied to healthcare, this business model can have disastrous consequences.
Patient Care Compromised:
PE firms often make decisions that prioritize financial returns over patient outcomes. In the quest to cut costs, essential services may be reduced, and corners may be cut, leading to lower standards of care. The healthcare sector is not just another industry—people's lives and well-being are directly impacted by the quality of care they receive. The introduction of PE firms into this space raises the risk of creating a system where profits come before patients.
Workforce Exploitation:
To maximize profits, private equity firms frequently slash jobs, reduce wages, and impose unreasonable demands on remaining staff. Healthcare workers, already under immense pressure, are forced to operate in increasingly challenging environments, leading to burnout, reduced morale, and a decline in the quality of care provided. The acquisition of Baxter's Kidney Care unit by Carlyle could very well result in a similar scenario, with nurses and technicians bearing the brunt of the firm’s cost-cutting strategies.
Increased Costs for Patients:
Despite their claims of improving efficiency, PE firms often drive-up costs for patients. By monopolizing essential healthcare services, they can dictate pricing, leading to higher out-of-pocket expenses for those in need of care. This is particularly concerning in areas like kidney care, where patients require regular, life-sustaining treatments that can be financially devastating without proper regulation and oversight.
Lack of Accountability:
Private equity firms operate with a level of opacity that is concerning in any industry, but particularly in healthcare. The layers of corporate ownership and the lack of transparency make it difficult to hold these firms accountable for the negative consequences of their actions. When healthcare services are controlled by entities more interested in their bottom line than in ethical responsibility, the public suffers.
The Danger of Normalizing Profit-Driven Healthcare
The increasing involvement of private equity in healthcare is a symptom of a larger problem: the commodification of human health.
Healthcare should never be viewed as just another business opportunity. The very idea that life-saving services could be compromised for the sake of investor returns is an affront to the core principles of medical ethics.
The Carlyle Group’s acquisition of Baxter’s Kidney Care business is a gross warning sign that we must not ignore.
It is a call to action for regulators, healthcare professionals, and the public to stand up against the encroachment of profit-driven entities into a sector that should prioritize human life above all else.
We must demand that healthcare remains in the hands of those who are committed to patient well-being, not profit margins.
The involvement of private equity firms like The Carlyle Group in healthcare is a dangerous trend that must be stopped before it does irreparable harm to the most vulnerable among us.
Challenging The commodification of human health
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The Revolt Health Network:
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Confirming the Findings in the Devolution Whitepaper
The revelations discussed here align with the findings in our recently published Devolution Whitepaper, which provides an in-depth analysis of the healthcare industry’s evolution. The whitepaper underscores the urgent need for alternative solutions like Revolt to counteract the monopolistic tendencies fueled by the ACA.
Meet The Author:
Mark Geiger
Co-Founder & Managing Partner of Revolt Healthcare Alliance, Inc
Mark’s Devolution journey began in 2020, when his best friend, Gary, was diagnosed with stage 4 esophageal cancer. Gary had an Enhanced Health Indemnity Plan and not only were his medical bills paid, but he also received over $59,000 in “excess indemnity” checks to spend however he needed.
In the months after Gary’s passing, Mark researched indemnity plans, as well as the overall US healthcare system, and concluded that his next mission would be advocating for and educating individuals, families, and corporations on how to get more affordable, quality healthcare coverage.
After leaving his position at the 3rd largest health insurance company in the US, he co-founded Revolt Healthcare Alliance and never looked back.
