Hospitals saw higher operating margins, decreases in costs per adjusted discharges, and increased inpatient utilization following private equity acquisitions, according to a Health Affairs study, reports Revcycle Intelligence.
After private equity acquisitions, hospital costs per adjusted discharge fell by $432 while operating margins increased by 1.78 percentage points, the study shows.
Private equity firms have been acquiring physician practices, hospitals, and laboratory facilities at high rates in recent years. These acquisitions have received mixed reviews from the industry on whether they benefit health systems.
Private equity advocates claim that the acquisitions provide hospitals with management expertise and funding to improve patient care. Meanwhile, critics have said the acquisitions burden hospitals with debt and discourage long-term investments that boost population health. Read more.
