NHS Property Provider Assura at Centre of International Bidding War

British healthcare property company Assura finds itself amidst an intense bidding war, with American private equity giants KKR and Stonepeak Partners competing against domestic rival Primary Health Properties (PHP) in a deal worth £1.7 billion.

The situation has drawn significant attention from parliamentary figures, with former pensions minister Baroness Altmann raising concerns about foreign ownership of critical NHS infrastructure. Speaking in the House of Lords, Altmann highlighted the potential risks of overseas private equity firms controlling NHS buildings, drawing parallels to previous healthcare sector failures.

The privatisation debate has intensified as Assura’s board currently favours a merger with PHP, presenting shareholders with a crucial decision that could determine the future of hundreds of GP surgeries across Britain. The proposed merger would maintain British ownership of these vital healthcare assets, whilst the alternative private equity acquisition raises questions about long-term stability and strategic control.

Historical precedents paint a cautionary tale, with Baroness Altmann pointing to the collapse of Southern Cross in 2011 and Four Seasons Healthcare in 2019. These cases demonstrated how aggressive private equity strategies, including asset stripping and excessive debt loading, can lead to devastating consequences in the healthcare sector.

The government’s response has been measured, with Baroness Merron, parliamentary under-secretary for health and social care, confirming ongoing dialogue with all parties while downplaying immediate risks. However, pressure is mounting for Health Secretary Wes Streeting to clarify the government’s position on protecting healthcare infrastructure from potentially harmful ownership changes.

KKR and Stonepeak Partners have defended their position, emphasising their extensive infrastructure sector experience and commitment to growth. The final decision now rests with Assura’s shareholders, with major institutional investors including Schroders, Aberdeen Investments, and Columbia Threadneedle already expressing reservations about private equity ownership.