The Profit-Driven Impact of Private Equity on Healthcare: An In-Depth Investigation by Federal Officials

The rise of private equity ownership in healthcare has garnered the attention of federal officials. The Federal Trade Commission, Department of Justice, and Department of Health and Human Services are conducting an investigation into how private equity ownership of hospitals and physician staffing companies is affecting healthcare. Additionally, a Senate committee has sent letters to private equity firms that own or staff hospital emergency rooms requesting information on staffing decisions, patient care, and safety.

It is estimated that about 25% of emergency room departments are now staffed by private equity-owned physician companies, double the rate from a decade or two ago. This growth has raised concerns about how private equity’s profit-maximizing focus is influencing healthcare costs, staffing levels, and patient safety. According to Sabrina Howell from NYU’s Stern School of Business, this trend has significantly increased in recent years.

The ongoing federal inquiries are aimed at understanding this impact more clearly and addressing key questions around healthcare quality in private equity-owned facilities. Loren Adler from the Center on Health Policy at Brookings highlights that private equity-owned companies have been found to raise prices for patients and consumers. However, the impact on the quality of care is still uncertain. Marketplace offers factual reporting on this topic to keep readers informed during these dynamic times. Donations from readers help support their independent journalism to continue covering essential topics such as healthcare quality and affordability.