The study, published in JAMA on Tuesday, found that in the three years after a private equity fund bought a hospital, adverse events including surgical infections and bed sores rose by 25% among Medicare patients when compared with similar hospitals that were not bought by such investors. The researchers reported a nearly 38% increase in central line infections, a dangerous kind of infection that medical authorities say should never happen, and a 27% increase in falls by patients while staying in the hospital.
Over the last two decades, private equity firms have become major players in health care, purchasing not just hospitals but also a growing number of nursing homes, physician practices and home health care companies. The firms pool money from institutional investors and individuals to form investment funds, often buying hospitals and other entities through high levels of debt, with an eye to reselling them in a few years. A separate recent study suggested the firms were consolidating physician groups in certain local markets, potentially leading to higher prices.
[EXTERNAL LINK] - Serious Medical Errors Rose After Private Equity Firms Bought Hospitals
Over the last two decades, private equity firms have become major players in health care, purchasing not just hospitals but also a growing number of nursing homes, physician practices and home health care companies. The firms pool money from institutional investors and individuals to form investment funds, often buying hospitals and other entities through high levels of debt, with an eye to reselling them in a few years. A separate recent study suggested the firms were consolidating physician groups in certain local markets, potentially leading to higher prices.
[EXTERNAL LINK] - Serious Medical Errors Rose After Private Equity Firms Bought Hospitals