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Private equity's thirst for health care providers

The emergency department at a Baptist Health hospital in Florida.
Outside a Florida hospital's emergency department. Photo: Jeffrey Greenberg/UIG via Getty Images

KKR's $10 billion deal to take Envision Healthcare private, along with Bloomberg's deep dive on the billing tactics of air ambulances, exemplifies private equity firms' appetite for buying health care providers that wield a lot of market power.

The big picture: These companies are a leading source of surprise medical bills, which infuriate patients but are profitable for private equity owners. Emergency rooms and ambulances aren't real marketplaces — consumers can't stop and shop for the best price in the middle of an emergency.