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African News Herald > Blog > Health > Patient care declines after private equity buys hospitals, study finds
Health

Patient care declines after private equity buys hospitals, study finds

ANH Team
Last updated: January 12, 2025 7:00 am
ANH Team
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Private Equity Acquisition of US Hospitals Linked to Worsening Patient Care Experience

A recent study published in JAMA by health policy experts at Beth Israel Deaconess Medical Center (BIDMC) has shed light on the impact of private equity (PE) acquisitions on the quality of patient care in US hospitals. The researchers found that patient care experience deteriorated after hospitals were acquired by private equity firms, along with patient-reported staff responsiveness.

Lead author Rishi Wadhera, MD, MPP, along with Anjali Bhatla, MD, and their team discovered that patient care continued to decline at PE-acquired hospitals over time compared to non-acquired hospitals. This suggests that profit-driven changes implemented by private equity may have long-term implications that accumulate over the years.

Wadhera emphasized the importance of patient perspectives in assessing the quality of care provided by hospitals. He stated, “Patients provide the most important perspective on whether a hospital is providing good or bad care, as they have a 360-degree view of the entire care experience.” The study results are concerning given the growing trend of private equity acquisitions in the healthcare sector.

The researchers analyzed data from 73 US hospitals acquired by private equity firms and compared them to 293 non-acquired hospitals from 2008 to 2019. They evaluated various metrics such as patients’ overall rating of the hospital, willingness to recommend the hospital, staff responsiveness, doctor and nurse communication, and hospital environment.

The findings revealed a significant decline in global measures of patient care experience and staff responsiveness following PE acquisition of hospitals. According to Bhatla, a research fellow at the Smith Center, “Poor patient experiences are associated with slower recovery from illness, medication nonadherence, and greater healthcare utilization.”

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Wadhera, who is also an Associate Professor at Harvard Medical School, emphasized the need for greater transparency, monitoring, and regulatory oversight as private equity’s presence in the healthcare industry continues to grow. In 2021, PE investors spent over $200 billion on healthcare acquisitions, highlighting the urgency for more research on the impact of private equity acquisitions on patient care.

This study adds to previous research by Wadhera that documented the rise of private equity firms acquiring outpatient cardiology practices. The researchers noted that PE firms tended to acquire practices in wealthier communities, potentially diverting resources from underserved areas. Furthermore, the frequent turnover of PE-acquired cardiology clinics raises concerns about short-term profit-driven strategies that may compromise the quality of care for patients.

In conclusion, the study underscores the need for comprehensive evaluation of the effects of private equity acquisitions on patient care. As the healthcare landscape evolves, it is crucial to prioritize patient well-being and ensure that financial interests do not compromise the quality of care provided by hospitals.

For more information, the study titled “Changes in Patient Care Experience After Private Equity Acquisition of US Hospitals” can be accessed in JAMA. Additionally, the team at Beth Israel Deaconess Medical Center continues to explore the implications of private equity in healthcare delivery and patient outcomes.

This article is subject to copyright and should not be reproduced without permission. For further details, please refer to the original publication in JAMA and the research conducted by BIDMC.

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