The healthcare industry is experiencing a rise in private equity ownership of hospitals and physician staffing companies. According to Sabrina Howell of NYU’s Stern School of Business, approximately 25% of emergency room departments are now staffed by private equity-owned physician companies, which is more than double the percentage from a decade ago. This increase in private equity ownership has raised concerns about how the focus on maximizing profits is affecting healthcare costs, staffing levels, and patient safety. Loren Adler from the Center on Health Policy at Brookings noted that while there is evidence that these companies increase prices, the impact on the quality of care is still uncertain.
The federal government is taking notice of this trend and has launched a joint inquiry by the Federal Trade Commission, Department of Justice, and Department of Health and Human Services to investigate the impact of private equity ownership on 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 crucial to understand how these trends are shaping the healthcare industry and impacting patients. The federal inquiries aim to address these concerns and determine the effects of private equity ownership on healthcare quality. By supporting independent journalism with a donation to Marketplace, you can help sustain factual, accessible information on current events and their implications for the public.
