New Mexico Named Top State at Risk of Private Equity Harm in Recent Study

The recent study naming New Mexico as the top state at risk of harm by private equity has raised concerns about the impact on the state’s health care system. Private equity investors, known for taking over and restructuring companies to cut costs, have a significant presence in New Mexico, particularly in the health care sector.

According to the study, a quarter of the hospitals and about a third of the nursing homes in the state are owned by private equity. Additionally, approximately a tenth of the private sector workforce in New Mexico is controlled by private equity, leading to nearly 2,000 layoffs between 2015 and 2022. Furthermore, about a quarter of the state’s pension assets are invested in private equity.

Chris Noble, the policy director for the Private Equity Stakeholder Project, emphasized the need for more transparency and regulation to protect workers and patients from the potentially predatory actions of private equity investors. His organization is advocating for laws that would require reviews and transparency when health care providers merge, as well as regulations around mass layoffs to ensure workers receive severance.

In response to these concerns, New Mexico recently passed a law that will require more transparency in hospital acquisitions, aimed at curbing harm caused by such transactions. Lawmakers hope this legislation will help protect the state’s health care system from the negative effects of private equity investment.

This news story highlights the growing influence of private equity in New Mexico and the efforts being made to safeguard the state’s health care system and workforce from potential harm.