If Walgreens Boots Alliance proceeds with a sale to private equity, it could join other healthcare companies facing scrutiny for selling to such investors.
Reports surfaced earlier this week that Walgreens is considering a sale to Sycamore Partners. If this happens, the deal could place the drugstore chain and its pharmacies and healthcare services under private equity control.
The healthcare sector has seen increased consolidation, with private equity deals attracting attention from lawmakers, federal antitrust agencies, and state attorneys general. This year, U.S. Senators launched investigations into private equity's growing influence in healthcare, including ownership of hospitals, physician practices, and clinics.
Senator Chuck Grassley, a member of the Senate Finance Committee, sent a letter to Ascension Illinois in May, asking how private equity impacts patient care, quality, and outcomes. This investigation is part of broader inquiries led by Senator Ed Markey into private equity's $1 trillion investment in U.S. healthcare, which has raised concerns about risks to patients, workers, and investors. Critics argue that private equity’s typical approach could jeopardize patient care and increase bankruptcy risks.
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