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

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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 w

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, the goal of PE is, over time, to make money. If that don’t make money they won’t keep getting those fees.

I’m no PE fanatic by any stretch, but running a business to make money is a lot better way to do it than many of the alternatives.