How Private Equity Keeps States Invested in Medical Billing Practices They’ve Banned

Several states have barred medical providers from shocking patients with surprise bills for thousands of dollars, but pensions in those same states are poised to profit from the practice. Public-employee retirement funds in California, New York, Oregon and other states have heavily invested with a private-equity firm, KKR & Co., that’s been buying up companies known for demanding steep payouts for emergency medical treatment and hospital stays that may not have been entirely covered by a person’s health plan. Health-care providers that use the practice, known as balance billing, often seek hundreds or thousands of dollars from patients after collecting what they can from insurers.