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Have private equity investors recently bought your local hospital or medical center? If so, beware. Your costs could go up.
Research recently published by JAMA Internal Medicine found that hospitals bought by private investors enjoy a substantial increase – almost 30 percent – in net income.
What’s going on?
It’s not that these hospitals operate more efficiently. In most cases, hospitals boosted their bottom lines by charging more.
Axios reports that total charges for inpatient care at 204 hospitals owned by private investors were $400 higher per day on average than 532 similar hospitals. Even if you haven’t needed hospital care, it’s likely that you are still absorbing the cost increases, as Axios reports these charges are often factored into our insurance premiums.
On the bright side, hospitals owned by private investors improved in some quality metrics related to care.
Has your hospital or physician’s practice been purchased recently? How as that affected care or costs? Share your story with Voices for Affordable Health.