Exhibit 3.

Differential change in types of insurance accepted associated with private equity (PE) acquisition of substance use disorder treatment facilities, 2009–22

Source/Notes: SOURCE Authors’ analysis of data from the National Survey of Substance Abuse Treatment Services paired with a data set of PE acquisitions. NOTES This exhibit plots event-time coefficients documenting the association between PE acquisition in relative year zero and three outcome indicators. All values are derived using the discussed modified difference-in-differences estimator. Establishment, year, and state-by-year fixed effects are included in all estimates. Outcome indicators distinguish whether a given form of insurance is accepted at a substance use disorder treatment establishment. All coefficients are estimated in comparison with the year immediately before acquisition. Vertical bars indicate 95% confidence intervals calculated from standard errors clustered by establishment. Reported p values are from an F test of the significance of all preacquisition coefficients: private insurance pre-period, p < 0.001; Medicare pre-period, p = 0.131; Medicaid pre-period, p = 0.108.