Private equity is playing a growing role in Washington’s health care system—but for most patients, that shift is largely invisible.
Ownership changes don’t usually show up on a clinic’s sign or a hospital’s website. Still, who owns health care matters. It can influence prices, access to care, and how medical decisions are made. A recent data snapshot from the Washington State Office of the Insurance Commissioner (OIC) offers a clearer look at how private equity has expanded across the state’s health care landscape.
What is private equity doing in health care?
Private equity firms pool money from investors to buy controlling stakes in companies. In health care, that often means purchasing medical practices or clinics and then managing them with the goal of increasing profits—sometimes by expanding services, consolidating practices, or cutting costs.
In Washington, private equity activity in health care has grown significantly since 2017. Deal activity increased steadily over several years, and by 2023, private equity transactions tied to Washington health care exceeded $10 billion in total value.
Which services are most affected
Private equity investment isn’t spread evenly across health care. The data shows it is heavily concentrated in certain types of services—especially those that are outpatient and highly profitable.
Veterinary and dental practices top the list by a wide margin. Together, they account for billions of dollars in private equity deals involving Washington-affiliated companies. Other frequently targeted areas include dermatology, gastroenterology, physical therapy, vision care, oncology, and mental health services.
These are often services people use regularly and expect to be local and accessible—making ownership changes especially relevant to everyday patients.
Rapid consolidation through acquisitions
A common private equity strategy is the “platform” model. A firm buys a large company, then uses it to acquire dozens of smaller practices. In Washington, several private equity-backed platforms have bought up large numbers of dental offices, veterinary clinics, physical therapy practices, and specialty clinics since 2021.
While some clinics keep their original names, they may now be part of much larger corporate networks. That kind of consolidation can change how care is delivered, how staff are treated, and how prices are set.
Why this matters for patients
The OIC report does not say whether private equity ownership is good or bad for Washington’s health care system. But national research has raised concerns that private equity ownership can be linked to higher prices and a focus on high-margin services.
At a minimum, this data highlights the need for transparency. Patients deserve to know who owns the places they get care and how financial incentives may shape medical decisions.
Private equity is no longer a small or niche presence in Washington health care. Understanding its role is a first step toward meaningful public discussion about affordability, access, and accountability.
