Profits Over Patients? Private Equity’s Growing Role in Disability Care Raises Concerns

Voices for Affordable Health has tracked the rise of private equity firms acquiring hospitals and physician practices. Now, Wall Street investors are expanding into group homes for people with intellectual and developmental disabilities.

A recent report from the Private Equity Stakeholder Project highlights the troubling cases of abuse, neglect and even fatalities under private equity-owned providers. One example details Sevita, which operates in 40 states, including Idaho and Utah. The company has faced sanctions for violations ranging from inadequate staff training to failing to prevent abuse.

Critics argue that private equity’s focus on maximizing profits— often through aggressive cost-cutting — can lead to understaffing and insufficient training, directly affecting the well-being of vulnerable populations.

As state and federal regulators address these concerns, advocates are calling for greater transparency and stronger oversight to ensure that disability care is not compromised in the pursuit of profit.

Have you or a loved one been affected by changes in disability care due to private equity ownership? Share your story with Voices for Affordable Health.