The Human Cost of Hospital Buyouts

A new study published in the Annals of Internal Medicine finds patients are more likely to die in hospital emergency rooms after private equity takeovers.

Researchers looked at more than 1 million emergency-room visits at nearly 50 private equity-owned hospitals and compared them with millions of visits at similar independent hospitals. Mortality was 13% higher at the private equity-owned facilities.

Researchers pointed to staffing cuts as the most likely reason. After acquisitions, full-time staff fell by more than 11% and emergency department salaries dropped nearly 20%.

“Most hospital care remains a face-to-face, human, labor-intensive endeavor. When human labor is cut, patient harm becomes more likely,” one of the study’s authors told  NBC News.

Doctors say the findings track with what they’ve seen for years: After private equity takes over, revenue growth comes first; when that plateaus, the focus shifts to cutting costs. That often means fewer staff, longer shifts and more pressure on the doctors and nurses who remain.

This isn’t the first time researchers have raised alarms about private equity in health care. Earlier studies found higher infection rates, more patient falls and increased mortality in nursing homes owned by private equity firms.

Private equity has poured more than $1 trillion into health care in recent years, drawn to a sector that accounts for nearly one-fifth of the U.S. economy. But the consequences are getting harder to ignore. Some states are pushing back. Oregon recently enacted one of the nation’s strictest laws limiting corporate and private equity control over health care operations.

The study adds to a growing body of evidence that when financial incentives take precedence over patient care, the results can be deadly. As private equity absorbs more hospitals and clinics, what will that mean for the safety of patients?

What’s your reaction? Should more states follow Oregon’s lead? Share your thoughts at Voices for Affordable Health.