Study Finds Increase in Patient Complications After Hospitals Acquired by Private Equity Firm

Private Equity Takeovers of Hospitals Linked to Increased Patient Harm, Study Finds

A recent study led by researchers at Harvard Medical School has revealed alarming findings regarding the impact of private equity takeovers on patient care in hospitals. According to the study, patients are more likely to experience falls, new infections, and other forms of harm during their hospital stay after it is acquired by a private equity firm.

Published in JAMA, the study analyzed data from over 600,000 hospitalizations at 51 private equity hospitals and more than 4 million hospitalizations at 259 similar hospitals not acquired by private equity. The results showed a 25 percent increase in hospital-acquired complications for Medicare patients after a hospital was acquired by a private equity firm. Patients also experienced 27 percent more falls and 38 percent more bloodstream infections caused by central lines.

The researchers expressed concerns that bottom-line incentives may be overshadowing patient care and safety in hospitals owned by private equity firms. The financial pressures created by the high-debt, for-profit financial model of hospital ownership may lead to profit-driven decisions that compromise the quality of care provided to patients.

Policy solutions have been proposed to address the negative effects of private equity acquisitions on patient health and quality of care. These solutions include regulating fraud and abuse, increasing antitrust oversight, reducing moral hazard, protecting against inflated prices, and increasing transparency in reporting of private equity acquisitions.

Overall, the study highlights the need for a better understanding of how private equity ownership affects healthcare operations and the importance of protecting patients and societal resources from the potential harms associated with private equity takeovers of hospitals.