The entry of private equity investment firms into health care systems is likely to worsen patient outcomes and increase costs
Toronto, May 21, 2025 – Canadian Doctors for Medicare (CDM) is sounding the alarm on the growing influence of private equity (PE) investment in Canada’s health care system, calling it a direct threat to patient care, health equity, and the sustainability of our publicly-funded health care system.
In a newly released position statement, CDM makes clear its opposition to the delivery of medically necessary, publicly-funded health services in facilities owned by private equity firms. Such ownership models prioritize profit over patient outcomes and have been linked to increased costs, reduced quality of care, and service instability.
“Health care should serve patients, not investors,” said Dr. Melanie Bechard, Chair of Canadian Doctors for Medicare and a pediatric emergency medicine physician in Ottawa. “The growing presence of private equity in our health system undermines the foundational principles of Medicare and puts patients at risk.”
Private equity firms buy and sell health care businesses with the goal of maximizing short-term returns. This often involves aggressive cost-cutting, debt-financed acquisitions, and reduced transparency. Evidence from countries like the U.S., Sweden, and the Netherlands shows that PE ownership has been associated with:
- Higher costs for patients
- Lower quality of care and staffing levels
- Greater risk of service disruptions due to bankruptcies
- Increased prioritization of profit-generating services over necessary ones
In Canada, private equity has already made significant inroads. A single PE firm owns a chain of 53 for-profit surgical centres across six provinces. PE ownership is also expanding in dental care, long-term care, medical practices, and telemedicine.
While some have argued that increased regulation could curb the risks of PE in health care, the evidence does not support this view. Instead, governments need to:
- Use regulatory tools to restrict PE activity in health care
- Invest in core public services like team-based primary care
- Expand pharmacare and dental care
- Strengthen publicly-funded health care delivery under Medicare
“Rather than opening the door to corporate investment, we need to strengthen and invest in public solutions that put patients first,” said Dr. Bernard Ho, Vice-Chair of Canadian Doctors for Medicare and an emergency physician in Toronto.
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About Canadian Doctors for Medicare
Canadian Doctors for Medicare is a nationwide, evidence-based nonpartisan member organization dedicated to strengthening and preserving Canada’s publicly-funded health care system. We advocate for innovations in treatment and prevention services that are evidence-based and improve access, quality, equity and sustainability.
For more information, please contact:
Zareef Ahmad
National Director
Canadian Doctors for Medicare
[email protected]