Private equity firms are buying up hospitals, and the consequences for patients who use these hospitals are chilling. New research published in Health Affairs finds that you have a 42 percent higher likelihood of dying in the 30 days post hospitalization in a private-equity-owned hospital. If you need even a simple surgery on an emergency basis, avoid private-equity-owned hospitals.
Researchers looked at the health outcomes of 298,000 Medicare patients receiving one of four simple surgeries at private-equity-owned hospitals: hernia operation, gall bladder removal, appendix removal, and partial colon removal.
They found that patients in private-equity owned hospitals needing emergency care had a 9.1 percent death rate in the 30 days post surgery compared to a 6.4 percent death rate in hospitals that were not private-equity owned. That additional 2.7 percent translates to a 42 percent greater likelihood of dying post-surgery than had the patients received their emergency surgeries in hospitals that were not private-equity owned.
Researchers did not find meaningful differences between private equity owned hospitals and non-private equity owned hospitals in mortality rates for non-emergency care. This suggests that private equity-owned hospitals might be stinting on emergency services or not hiring adequate emergency room staff.
Two other recent studies also found poorer health outcomes for patients in private-equity owned hospitals. One study of Medicare patients in private-equity owned hospitals, reported in JAMA Network, found a 25.4 percent higher incidence of falls and central-line bloodstream infections in private-equity-owned hospitals, which the authors believe suggests “poorer quality care.”
Another study published in JAMA Network found patients reported worse care in private-equity owned hospitals. The authors conclude that “Patient care experience worsened after private equity acquisition of hospitals.”
To be sure, private-equity firms are also buying up emergency care providers, hospice and home health agencies, orthopedic practices, and more. Several studies suggest that it would be advisable to avoid these health care providers for improved patient safety and health outcomes.
Here’s more from Just Care:
- Private equity is destroying ER care
- Oregon moves toward restricting private equity from owning physician practices
- Private equity profiting wildly on home care at the expense of older adults
- Private equity buying up specialists and driving up health care costs
- Private equity buying up orthopedics practices
