In buying up U.S. hospitals, private equity firms often say they are providing capital to improve patient care. A new study concludes that the opposite is true.
by physician researchers has found that when private-equity firms buy hospitals, they sell off assets, challenging longtime industry claims that the purchases lead to investment in patient care.
The study examined 156 purchases over the past decade and is published today in JAMA, the journal of the American Medical Association. Federal Trade Commission chair Lina Khan said the agency will investigate “strip-and-flip tactics and other financial plays that can enrich executives but leave the American public worse off. … When private equity firms buy out health-care facilities only to slash staffing and cut quality, patients lose out.”The American Investment Council on Monday continued to defend the role of private equity in U.S. health care.
Their investments in hospital and other health-care facilities have also led to some notable failures, such as the bankruptcy ofand, more recently, of Steward, which is one of the biggest hospital bankruptcies in U.S. history.
France Dernières Nouvelles, France Actualités
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