Private Equity Acquisition Of Substance Use Treatment Centers Increases Probability Of Public Health Insurance...

Private equity (PE) firms have actively acquired substance use disorder treatment facilities in the past decade. Evidence on whether these acquisitions affect establishments' operations is limited. Using a novel catalog of treatment facilities acquired by PE firms and a difference-in-differences research design, we identified a relative increase in the probability that establishments accepted public health insurance after PE acquisition. We did not observe a differential change in the probability that the facility offered common forms of medication treatment. Our results suggest that PE acquisitions may increase participation in public insurance programs to expand the revenue sources at acquired facilities without necessarily changing the scope of service lines available.