Private Equity in Public Provider MarketsMeghan I. Esson from The University of Iowa (USA) is guest at the HCHE Research Seminar

14 July 2025, 4:30 pm

Prof. Meghan I. Esson from The University of Iowa (USA) examines how private equity (PE) firms generate value in markets where they compete against government providers. Using novel data from Arizona's ambulance industry, she finds PE-owned companies increase operating profits by 50% through cream-skimming: strategically exploiting regulations to shift unprofitable customers to the government while retaining high-profit customers. In the ambulance industry, they accomplish this by firing paramedics, which, due to nationwide staffing regulations, forces local fire departments to take the high-cost runs. This strategic reallocation of services only occurs where PE firms overlap with fire departments and impacts public health -- leading to 200 additional traffic fatalities in Arizona and a 7% increase nationally. Her findings demonstrate how PE profit maximization in mixed public-private markets can create substantial negative externalities for both public balance sheets and public health.

Meghan I. Esson presents her findings on Mon, 14. July 2025 at 16.30 hrs at the Research Seminar: "Private Equity in Public-Provider Markets: Operating Efficiency vs. Cream-Skimming" .

Guests are welcome, please register on our website. The lecture is in English.