Private equity involvement in healthcare has grown rapidly in the past twenty years, with annual investments reaching an estimated $505 billion in 2023. High-profile failures, however, have fueled criticism about PE practices. This working paper takes a critical look at the most common complaints and evaluates whether government intervention is warranted.

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Reform of the graduate medical education funding model is badly needed. In the short term, expansion of residency slots could alleviate the artificial shortage of residency slots brought about by current government policy. In the long term, policymakers should more fundamentally rethink the need for federal funding in graduate medical education.

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