Private investment into the health care sector may bring innovation, but it's also led to revenue-seeking behaviors at the expense of patients, three employees of The Commonwealth Fund argue in Harvard Business Review.

By the numbers: There were nearly 800 private equity health care deals in 2018, with a total value of more than $100 billion.

Surprise medical bills have recently put private equity in the spotlight.

  • Many of these bills are generated by specialties commonly backed by private equity, like emergency room care, anesthesiology and radiology.
  • One of the biggest political forces lobbying against Congress' effort to stop surprise medical bills is a group called Doctor Patient Unity, which has spent more than $28 million on ads and is primarily funded by private-equity-backed companies.

The big picture: Physician practices are a common target for private equity firms.

  • These investments may give small practices an alternative to being bought by hospitals, "but, at least in some cases, the investors' strategy appears to be to increase revenues by price-gouging patients when they are most vulnerable," the authors write.
  • Freestanding emerging rooms are also commonly owned by private equity. These have come under fire for their high prices, which can be 22 times higher than what a physician's office charges for the same care.

The bottom line: Price-gouging patients may backfire. "Consumer outrage leads quickly to government intervention," the authors conclude.

Go deeper: Private equity's other stake in surprise medical bills

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Updated 17 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 10:30 a.m. ET: 12,077,210 — Total deaths: 550,327 — Total recoveries — 6,636,374Map.
  2. U.S.: Total confirmed cases as of 1o:30 a.m. ET: 3,055,491 — Total deaths: 132,310 — Total recoveries: 953,420 — Total tested: 37,431,666Map.
  3. Public health: Cases rise in 33 states — Fauci says states with severe outbreaks "should seriously look at shutting down"
  4. Education: How Trump's push to reopen schools could backfire — College sports stare down a disaster in the fall.
  5. Jobs: 1.3 million Americans filed for unemployment last week.

Supreme Court says Manhattan prosecutors can obtain Trump's financial records

Photo: Saul Loeb/AFP via Getty Images

The Supreme Court ruled Thursday that Manhattan prosecutors can obtain President Trump's financial records — and punted House Democrats' efforts to access similar records to a lower court.

Why it matters: The Manhattan ruling, a 7-2 decision, is a stinging loss for Trump, who has fought relentlessly to keep these records secret.

Chelsea Clinton is considering forming a venture capital firm

Photo Illustration: Sarah Grillo/Axios. Photo: Jemal Countess/Getty Images

Chelsea Clinton is in the very early stages of forming a venture capital firm, Axios has learned from multiple sources.

What we’re hearing: The working name is Metrodora Ventures, after the author of the first medical text known to have been written by a woman (around 2,000 years ago in Greece).