Private Equity in the Healthcare System

Topic: Healthcare Research
Words: 665 Pages: 2

The healthcare system is a set of interrelated and interacting regulatory legal acts, sources of healthcare financing, types of medical care, bodies, and organizations that manage and receive medical care. Each country has historically developed and developed its healthcare system – a set of ways to attract economic resources for the production of medical services, providing medical care to the population. It is vital to understand the system to identify how specific mechanisms work. Additionally, it is necessary for determining the weak spots to be fixed.

Overview of Providers

Who Are They and What They Do

A healthcare provider is a particular person or entity licensed to provide medical care.


  1. Clinic offers non-emergency healthcare services to almost any patient.
  2. Hospital delivers intensive and emergent care.
  3. Medical group consists of several physicians sharing resources and provides healthcare services.
  4. Health system represents an organization accountable for care delivery to the population.
  5. Hospital network is a chain of clinics or other healthcare facilities that offer medical services.


  1. Physicians practice medicine and can be individually employed (Butcher, 2020).
  2. Advanced practice providers have a determined range of activities.
  3. Allied health professionals provide non-physician care.
  4. Health professionals are responsible for delivering any type of care.

How They Address Inequity

Healthcare inequity is a major global issue presuming that not all social groups have equal access to medical services. Typically, institutional healthcare providers aim to address the problems on the local level, whereas individuals aim to impact the system at the state level. For example, clinics, hospitals, and hospital networks introduce loyalty programs for any vulnerable group. Medical groups and health systems suggest initiatives for health outcomes. Physicians and advanced practice providers may offer new policies and participate in advocating (Gondi & Song, 2019). Meanwhile, allied health professionals and health professionals contribute to disparities’ elimination by engaging in organizations promoting patient safety and equality.

Overview of Settings

What They Are

  • Hospital is a facility where the professionals provide diagnostic examination and treatment to those needing immediate care.
  1. Outpatient clinic exist to treat patients who need short-term care and exist to treat patients who need short-term care.
  2. Long-term care facility is created to sustain the recovery process of people with disabilities or ongoing health conditions.
  3. Clinical lab carries out diagnostic tests ordered by physicians.
  4. Hospice is created for terminally ill patients or those at the end of their lives.

How They Address Inequity

Normally, hospitals take part in public health policy-making to address inequality. Meanwhile, outpatient clinics and clinical labs serve patients without insurance, thereby allowing all people receive medical services regardless of socioeconomic, cultural, and other factors (Edwards et al., 2020). Long-term care facilities and hospices also stand for equity by establishing an organizational culture to ensure tolerance and total acceptance. In general, all these facilities participate in programs aimed at fighting inequity.

Overview of Purchasers

Who Are They and How They Work

  1. Insurance is a form of social protection of the interests of the population in the field of health protection, expressed in the guarantee of payment for medical care. It is used in the event of an insured event at the expense of funds accumulated by the insurer.
  2. Government is another purchaser of healthcare which aims to increase the level of social welfare. Hence, it works by helping improve healthcare outcomes and introducing health initiatives.
  3. Individual purchaser is a person or organization that buys healthcare services directly from a medical facility. They merely purchase a service or product and use it to their advantage.

How They Address Inequity

Insurance providers aim to create less difficult eligibility criteria to address the issue of unequal access to healthcare services. Government approves or disapproves campaigns and programs targeted to fight inequality. Even though the problem cannot be addressed on the whole, the government allows different social and cultural groups access the care (Horrill et al., 2022; Jilani et al., 2021). Finally, the individuals suggest various initiatives to solve the issue, for instance, they publicly speak up at local or regional events.


Butcher, L. (2020). The future of private equity in healthcare. Physician Leadership Journal, 7(4), 57-60.

Edwards, T. L., Breeyear, J., Piekos, J. A., & Edwards, D. R. V. (2020). Equity in health: consideration of race and ethnicity in precision medicine. Trends in Genetics, 36(11), 807-809. Web.

Gondi, S., & Song, Z. (2019). Potential implications of private equity investments in health care delivery. Jama, 321(11), 1047-1048. Web.

Horrill, T. C, Browne, A. J., Stajduhar, K. I. (2022). Equity-oriented healthcare: What it is and why we need it in oncology. Current Oncology, 29(1), 186-192. Web.

Jilani, M. H., Javed, Z., Yahya, T., Valero-Elizondo, J., Khan, S. U., Kash, B., & Nasir, K. (2021). Social determinants of health and cardiovascular disease: current state and future directions towards healthcare equity. Current Atherosclerosis Reports, 23(9), 1-11. Web.

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