Supporters argue these investments can improve efficiency and fund upgrades to equipment and facilities. But critics warn they can also lead to staff cuts, closures, and reduced access to care.
In this episode, New Mexico House Majority Leader Reena Szczepanski discusses why she sponsored House Bill 586, which requires disclosure and review of potential healthcare acquisitions. Joining the conversation are Eileen O’Grady of the Private Equity Stakeholder Project and Dr. Mark Epstein, who offer insight into how private equity is reshaping healthcare in New Mexico and beyond.
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In a live in-studio conversation, New Mexico House Majority Leader Reena Szczepanski explains why she became a leading proponent and sponsor of House Bill 586, which was signed into law on July 1. She outlines the bill’s intent—to increase transparency and oversight of private equity acquisitions in healthcare—and details how the law will be implemented. Szczepanski emphasizes that New Mexico’s top ranking in the percentage (40%+) of hospitals owned by private equity firms poses real risks for a state already struggling with limited access to medical professionals and adequate care.
Eileen O’Grady, director of education at the Private Equity Stakeholder Project and a specialist in healthcare policy, shares her concerns about how private equity firms operate—particularly their use of debt to generate returns for investors. That financial model, she warns, can leave hospitals vulnerable to financial instability, and in some cases, closure or bankruptcy.
Adding a different perspective, Dr. Mark Epstein, an Albuquerque-based physician and advisor/investor in medical facilities, notes that the public sector alone cannot meet all the healthcare needs in New Mexico. He argues that private capital plays an essential role in maintaining and expanding access to services, if used responsibly.
The episode concludes with a thoughtful discussion on the broader question: Is healthcare a business or a public service? And what is the right balance between profit and care?
Host: Jim Falk
Co-host: Peter Smith
Guests: New Mexico House Majority Leader Reena Szczepanski
Eileen O’Grady, Director of Education, Private Equity Stakeholder Project
Mark Epstein, MD, MBA
Show Notes: