Is the growth of private equity investment in US healthcare perpetuating health inequity? The US healthcare sector has several features that make it appealing for PE firms. First, healthcare will always be needed, thus demand and revenue remain steady regardless of the state of the economy. Second, the US has an ageing population with increasing need for care. Third, bills are mostly paid by third parties in the form of private insurance or government programmes, which insulates providers from patients’ financial inadequacy and allows them to charge higher prices. Fourth, the industry is highly fragmented, which creates opportunities for consolidation, while best practices have been slow to develop. “There’s an increasingly big role for private equity in the healthcare market,” says Arvin Abraham, a Private Equity partner. “It’s both a source of funding and of spurring on efficiency in healthcare businesses, and a source of innovation.” More in Private Equity International.