Private equity acquisitions of short-term acute care hospitals were generally not associated with any changes in patient outcomes or healthcare spending among Medicare beneficiaries, a study published in JAMA Network Open found.
Private equity acquisition of healthcare facilities has become increasingly common over the past 20 years, particularly among physician groups, hospitals, and nursing homes, reports RevCycle Intelligence. Private equity firms are likely interested in hospitals due to for-profit incentives, such as aging populations that require significant acute care services and fragmented hospital markets where they can increase negotiating power over payers.
Industry leaders have questioned whether private equity acquisitions adversely affect healthcare spending and quality of care due to these finance-driven intentions. Read more.
