Private Equity's Impact on Healthcare Quality

This report examines the role of private equity (PE) in the healthcare sector, highlighting significant concerns regarding its impact on patient care quality. It documents that over the past two decades, PE firms have invested more than $1 trillion in healthcare, often employing financial models that adversely affect care standards. The report outlines how PE ownership correlates with increased in-hospital complications and higher patient mortality rates in nursing homes. It details the systemic issues arising from PE practices, including high debt-to-cash flow ratios that lead to staffing reductions and compromised services. Despite these challenges, the report also notes that some PE firms have adopted responsible practices, suggesting potential for reform. The document proposes a series of recommendations aimed at encouraging PE firms to prioritize patient care, including legislative measures and responsible investment policies. It emphasizes the need for transparency and accountability in PE healthcare investments to ensure community health needs are met.