re: Apparently private equity is buying up small hospitals in LA

quote:

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The goal of private equity is as follows: 1) Buy a business and load it up with debt 2) Take a ton of cash out 3) Trim expeneses to the absolute bone, and usually beyond 4) Starve the business of resources / spending as much as possible, but not so much as to cause it to shut down, so they can flip it in a few years and make a ton of money and pass it on to the next group, or 5) If they go too deep and end up putting it out of business, just sell off the assets and get the remaining cash out that way.

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I saw this on an episode of Sopranos. We could use a few more mob members keeping neighborhoods crime free in the cities and a few less private equity folks ruining banking systems at the cost of middle class.