Hospitals under private equity ownership experienced a surge in patient falls and infections, as indicated by a recent study published in the Journal of American Medicine. The research, utilizing 100 percent Medicare Part A claims data, revealed a 25.4 percent increase in “hospital-acquired conditions” three years after the hospitals underwent private equity acquisition. This rise was particularly driven by incidents of falls and central line-associated bloodstream infections.
The study noted that Medicare beneficiaries at private equity-owned hospitals were slightly younger, less likely to have dual eligibility for Medicare and Medicaid, and more frequently transferred to other acute care hospitals compared to the control group. This demographic variation likely represented a lower-risk population of admitted beneficiaries, contributing to a small relative reduction in in-hospital mortality that diminished within 30 days after hospital discharge.
The findings raise concerns about the impact of private equity ownership on patient safety and healthcare outcomes in hospitals. This comes in the context of a broader discussion around the influence of private equity firms in the healthcare sector.
Two weeks ago, the Lower Costs, More Transparency Leadership Act successfully passed the House, overcoming previous opposition from Democrats like Rep. Richard Neal (D-Mass.) in September. Notably, the bill lacked provisions addressing private equity ownership of health facilities at the time of its initial opposition.
The legislation not only aims to enhance transparency and reduce costs but also seeks to ban spread pricing from pharmacy benefit managers. Additionally, it introduces site-neutral payment reforms to Medicare. Rep. Frank Pallone Jr. (D-N.J.) praised the legislation as a “victory for everyone who has ever struggled to navigate and understand the cost of a health care procedure or a prescription drug at the pharmacy counter.” Pallone emphasized that the measures would empower consumers and employers with data on hospital charges and insurer rates, enabling informed comparisons and cost-saving decisions.
