"Private equity ownership increases in-hospital complications by 25% and reduces nursing staff by 4.4%. Additionally, it correlates with 11% higher patient mortality rates in nursing homes."
"Research shows that private equity ownership increases the risk of bankruptcy by 10 times, with 34 bankruptcies of PE-backed healthcare businesses occurring in 2023 alone."
"The private equity model needs to be adapted for the healthcare sector, because otherwise, they're an unhealthy fit. The stakes in healthcare are life and death."
Private equity firms have invested over $1 trillion in healthcare, resulting in increased in-hospital complications and reduced nursing staff. Ownership correlates with higher patient mortality rates and a tenfold increase in bankruptcy risk. In 2023, 34 PE-backed healthcare businesses went bankrupt, affecting low-income and rural communities. Case studies of Steward Health and Prospect Medical illustrate the negative impact of private equity ownership. The report calls for adapting the private equity model to better fit the healthcare sector, emphasizing the life-and-death stakes involved.
Read at MedCity News
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