Private equity investors, with their focus on buying cheap and reaping quick returns, are moving voraciously into the U.S. health care system; investments increased twentyfold from 2000 to 2018, and have only accelerated since, News-Medical reports. Financially distressed rural hospitals are often targets, putting vulnerable communities at the mercy of firms whose North Star is profit, rather than patient health. A recent report found that 441 PE-backed healthcare facilities, more than 20%, were at risk of closing or losing services.
Eileen O’Grady, research manager at the nonprofit Private Equity Stakeholder Project, said private equity’s focus on strong, speedy returns makes it a risky business model for health care. “In rural hospitals,” O’Grady said, “There are very few ways” to boost revenue and cut expenses “without having an impact on patient care.” Read more.
