Zebadiah Miller
Professor Joan Snyder M.A.E.
English 102
01-07-2026
Lesson 11
Private equity investments are expanding into hospitals and healthcare systems at an unprecedented rate. Private equity will continue to grow and challenge more conventional healthcare options. Private equity investments into healthcare change the dynamic of healthcare, no longer is the main goal patient care, the goal changes to how to make the highest profit. In this essay I will be researching and discovering the harm that private equity investments in healthcare systems cause to overall patient care, patient experiences, healthcare worker satisfaction, and the hidden costs to the healthcare systems and hospitals. We need our lawmakers and hospital policymakers to see the harm that private equity brings to healthcare systems. Private equity is appealing in the short term but leads to long term consequences. Private equity is already causing harm to healthcare in America, and without increased laws and regulations the harm will continue to spread.
Hospitals and healthcare systems are more frequently owned by private equity investments firms and companies. Researchers have "found that between 2000 and 2018 private equity investments in health care increased by a factor of 20" (Public Citizen 4) showing a considerable increase in the interest private equity is showing in healthcare. Private equity investment firms invest in healthcare because of the high demand and necessity of healthcare. Failing hospitals and healthcare systems are enticing to private equity investors. Investors take the failing hospitals and healthcare systems make dangerous cuts to the hospitals and healthcare systems current model just to make a quick buck. Hospitals and healthcare systems are often left with increased debts from private equity's "goal of acquiring quick financial gains... by assigning debt to the facilities and practices it buys..." (Unruh and Rice). Patient care and healthcare workers' quality of life is also worsened by private equity investing in healthcare.
Patient care and outcomes in private equity owned hospitals and healthcare systems are worse than in more traditional hospitals and healthcare systems. The number of hospital-based infections increased significantly in private equity owned hospitals with a "37.7% increase in bloodstream infections associated with central lines at private equity-owned hospitals." (Kannan, Bruch & Song). Hospitals owned by private equity not only had an increase in infections in central lines but also placed fewer central lines than the control hospitals (Kannan, Bruch & Song). With increased infections comes increased morbidity and mortality for patients. Increased costs to both patient and healthcare systems also come with increased infections in private equity owned healthcare systems. Without changes to the current regulations for private equity, these problems will only worsen. Infections were not the only negative outcome to the patients.
Private equity hospitals are also associated with increased falls compared to control hospitals. Hospitals acquired by private equity had a "27.3% increase in falls" (Kannan, Bruch & Song) when compared to control hospitals. More falls leads to an increased chance of serious injury and death. The exact cause of the increased falls is not known, but one major factor is a reduction in staffing at hospitals. Without enough staff to safely monitor and assist patients. Patients must place themselves in risky situations at times because no staff is available to assist them. Without more oversight on private equity owned healthcare systems and hospitals, these problems will continue to worsen. Not only is private equity worse for patient health, but it also hits patients, hospitals and healthcare systems in their pocketbook with increased costs.
The increased costs of private equity owning hospitals and healthcare systems are hidden from public knowledge. Private equity owned hospitals charge more to increase the profit margins for investors. Scheffler et al. Show in their article that private equity increases their prices for a profit and directly pushes the increased costs to the patient. Patients often are unaware of the costs of procedures or medications at hospitals until the bill arrives. Transparent billing is less likely from private equity owned hospitals and healthcare systems. Another increased cost to the patient is because "private equity firms often "press for unnecessary procedures" as part of their revenue-generation strategy after leveraged buyouts (Geyman et al., summarized abstract). Profits is the bottom line for private equity firms owning hospitals and healthcare systems and without further regulation the increased costs will only grow. Hospitals themselves are often burdened with increased costs.
When private equity purchases hospitals and healthcare systems, it will often sell the land underneath the hospital and healthcare systems and require those entities to then lease the land from the purchaser. This often leads to increased burdens on healthcare systems and hospitals to cut costs or increase prices. Often hospitals and healthcare systems will be required to reduce staff to the bare minimum, which places both staff and patients at risk. Hospitals and healthcare systems also change their model from providing full care to patients to only offering profitable care with the highest margins for profit. This article states that "Our findings suggest that private equity-acquired hospitals adopt technology in response to a profit incentive and pivot toward service lines and contractual arrangements that are rewarded by payers" (Cerullo et al. 1703) showing private equity does prioritize profits over patient care and the wellbeing of patients, healthcare systems, and healthcare staff.
Patient experiences at private owned healthcare systems and hospitals are another area where private equity is lacking. According to (Bhatla et al.) patients' experiences decreased after hospitals had been purchased by private equity. In the same study they found that staff responsiveness was decreased, and patients were less likely to recommend that hospital after private equity purchased the hospital. Private equity is prioritizing profits over patient care and patient experience. Hospitals and healthcare systems do not have enough staff to provide quick responses to patients' needs. Profits are the main driver in policy in private equity owned hospitals and healthcare systems and without some increased regulations patient experiences are only going to get worse with private equity answering to nobody but themselves.
America will continue to see private equity grow in the healthcare sector unless it starts to make some changes. Private equity sees healthcare as a stable and reliable source of income. Healthcare is a necessity to basic life of all Americans and private equity knows this and desires to exploit that necessity. Healthcare systems and hospitals have already been purchased at an alarming rate over the past twenty years. This problem will not solve itself and will only continue to worsen.
Private equity sees the healthcare sector as a stable means of income. There are many hospitals and healthcare systems struggling financially in need of financial aid. Investors are a means to help struggling institutions, but the cost to patients, healthcare systems, and healthcare workers is great. Eventually the traditional hospitals will no longer be available. The only hospitals available will be owned by private equity with a few companies holding most of the control of healthcare systems and hospitals. This will lead to worsening healthcare across America.
With private equity owning more hospitals and healthcare systems, patients have less choice when it comes to their health. Patients also have less options with private equity prioritizing profitable treatments. Some treatments will become nonexistent, and patients with those conditions are more likely to have poor outcomes than currently. Patient experience will become less important as well, with the need to increase profits taking priority over patient experience. Healthcare staff will also continue to be reduced, which will be a detriment to both the staff and patients. Pivate equity will continue to focus on profits over anything else to continue to keep investors happy.
Private equity will squeeze hospitals and healthcare systems to make the highest profit. If private equity is allowed to continue with the current business practices, hospitals are going to be burdened with even more debt. Currently hospitals end up taking on even more debt after private equity invests in the hospitals. This is from the private equity investment firm selling the land and properties the hospital already owns. This article shows that "One tactic private equity firms use is to sell off the real estate of the hospitals, which can leave individual hospitals owing millions of dollars in rent on a building they no longer own" (Public Citizen 18). This problem will only continue to worsen if left unchecked and will eventually snowball out of control. Hospitals and healthcare systems will be forced to close when they are unable to pay their rent, leaving patients without access to healthcare. We need something to fix the problem of private equity in healthcare, but the solutions are not always simple.
One quick solution to the problem of private equity owning hospitals and healthcare systems is increased transparency. If the public had more knowledge of which hospitals were and weren't owned by private equity, it would be easier to make a choice on where to receive care. Having more transparent billing practices from private equity would also be a step in the right direction as a simple fix until a more permanent fix can be found. Knowing what private equity is doing with the hospitals and changes made to the hospital is vital information that would help keep private equity accountable and patients informed. The knowledge that the hospital or healthcare system you choose is owned by private equity will help you understand that you will possibly have a hospital or healthcare system with less staff, less equipment, and increased costs. This is just a simple fix to get started; there are more permanent and in-depth fixes needed to solve this crisis.
Another quick solution is to have an oversight committee formed to help keep private equities business practices honest. With a non-biased committee to oversee how private equity is operating hospitals and healthcare systems, the public can have faith that patient care will continue to be a priority. One quick way to bring oversight committees to healthcare systems is for either the hospital, public, or private equity firm to put one in place. Private equity will have someone step in and keep them accountable when they are overcharging services, working with too little staff, and incentivizing the use of unnecessary treatments and tests. These are only band-aid fixes, and more systemic fixes are necessary to completely solve the problem.
One major change according to (Cerullo et al. 1699) that needs to happen is the understanding of how private equity ownership impacts hospital behavior at both the federal and state levels. Federal and state levels of government need to have a better understanding of how private equity prioritizes profits over patients. The need to fully understand a problem is vital in creating permanent and strong solutions to the problem. With more understanding of a problem, it is less likely that private equity will be able to circumvent policies or find loopholes. Studies show that private equity fundamentally changes the way a hospital operates, and policymakers at both state and federal levels need to understand these changes (Cerullo et al. 1699-1703). Understanding is the key to implementing better laws and regulations, which is the long-term solution to the problem of private equity owning hospitals and healthcare systems.
The current policies, laws, and regulations are not adequate to control the greed of private equity in healthcare. We need new laws and regulations at both the states and federal levels to solve the problems created by private equity owning hospitals and healthcare systems. Private equity can get away with too much. Prices in hospitals and healthcare systems are soaring under private equity ownership. Hospitals are struggling with new debts as private equity sells the ground and buildings and requires the hospital to now pay rent on something it once owned. Patient care is worse in private equity owned hospitals with less staff. The only solution is to place robust laws, policies, and regulations that will prevent private equity from making each of these problems worse. New laws, policies, and regulations will help to ease the current problems created by private equity owning healthcare systems and hospitals.
America has a problem with private equity ownership of healthcare systems and hospitals. It leads to worse patient outcomes with increased infection and falls. Patients have worse experiences at private equity owned hospitals and healthcare systems and are less likely to recommend those facilities. Private equity owned hospitals and healthcare systems have less staffing and equipment with a priority to only offer profitable treatments. These problems will continue to worsen as private equity owns increasingly more hospitals and healthcare systems. We need robust new laws, policies, and regulations for private equity ownership in America. This is a problem that needs to be addressed sooner rather than later. The future of healthcare is at risk if we do nothing about this problem.
Professor Joan Snyder M.A.E.
English 102
01-07-2026
Lesson 11
Private equity investments are expanding into hospitals and healthcare systems at an unprecedented rate. Private equity will continue to grow and challenge more conventional healthcare options. Private equity investments into healthcare change the dynamic of healthcare, no longer is the main goal patient care, the goal changes to how to make the highest profit. In this essay I will be researching and discovering the harm that private equity investments in healthcare systems cause to overall patient care, patient experiences, healthcare worker satisfaction, and the hidden costs to the healthcare systems and hospitals. We need our lawmakers and hospital policymakers to see the harm that private equity brings to healthcare systems. Private equity is appealing in the short term but leads to long term consequences. Private equity is already causing harm to healthcare in America, and without increased laws and regulations the harm will continue to spread.
Hospitals and healthcare systems are more frequently owned by private equity investments firms and companies. Researchers have "found that between 2000 and 2018 private equity investments in health care increased by a factor of 20" (Public Citizen 4) showing a considerable increase in the interest private equity is showing in healthcare. Private equity investment firms invest in healthcare because of the high demand and necessity of healthcare. Failing hospitals and healthcare systems are enticing to private equity investors. Investors take the failing hospitals and healthcare systems make dangerous cuts to the hospitals and healthcare systems current model just to make a quick buck. Hospitals and healthcare systems are often left with increased debts from private equity's "goal of acquiring quick financial gains... by assigning debt to the facilities and practices it buys..." (Unruh and Rice). Patient care and healthcare workers' quality of life is also worsened by private equity investing in healthcare.
Patient care and outcomes in private equity owned hospitals and healthcare systems are worse than in more traditional hospitals and healthcare systems. The number of hospital-based infections increased significantly in private equity owned hospitals with a "37.7% increase in bloodstream infections associated with central lines at private equity-owned hospitals." (Kannan, Bruch & Song). Hospitals owned by private equity not only had an increase in infections in central lines but also placed fewer central lines than the control hospitals (Kannan, Bruch & Song). With increased infections comes increased morbidity and mortality for patients. Increased costs to both patient and healthcare systems also come with increased infections in private equity owned healthcare systems. Without changes to the current regulations for private equity, these problems will only worsen. Infections were not the only negative outcome to the patients.
Private equity hospitals are also associated with increased falls compared to control hospitals. Hospitals acquired by private equity had a "27.3% increase in falls" (Kannan, Bruch & Song) when compared to control hospitals. More falls leads to an increased chance of serious injury and death. The exact cause of the increased falls is not known, but one major factor is a reduction in staffing at hospitals. Without enough staff to safely monitor and assist patients. Patients must place themselves in risky situations at times because no staff is available to assist them. Without more oversight on private equity owned healthcare systems and hospitals, these problems will continue to worsen. Not only is private equity worse for patient health, but it also hits patients, hospitals and healthcare systems in their pocketbook with increased costs.
The increased costs of private equity owning hospitals and healthcare systems are hidden from public knowledge. Private equity owned hospitals charge more to increase the profit margins for investors. Scheffler et al. Show in their article that private equity increases their prices for a profit and directly pushes the increased costs to the patient. Patients often are unaware of the costs of procedures or medications at hospitals until the bill arrives. Transparent billing is less likely from private equity owned hospitals and healthcare systems. Another increased cost to the patient is because "private equity firms often "press for unnecessary procedures" as part of their revenue-generation strategy after leveraged buyouts (Geyman et al., summarized abstract). Profits is the bottom line for private equity firms owning hospitals and healthcare systems and without further regulation the increased costs will only grow. Hospitals themselves are often burdened with increased costs.
When private equity purchases hospitals and healthcare systems, it will often sell the land underneath the hospital and healthcare systems and require those entities to then lease the land from the purchaser. This often leads to increased burdens on healthcare systems and hospitals to cut costs or increase prices. Often hospitals and healthcare systems will be required to reduce staff to the bare minimum, which places both staff and patients at risk. Hospitals and healthcare systems also change their model from providing full care to patients to only offering profitable care with the highest margins for profit. This article states that "Our findings suggest that private equity-acquired hospitals adopt technology in response to a profit incentive and pivot toward service lines and contractual arrangements that are rewarded by payers" (Cerullo et al. 1703) showing private equity does prioritize profits over patient care and the wellbeing of patients, healthcare systems, and healthcare staff.
Patient experiences at private owned healthcare systems and hospitals are another area where private equity is lacking. According to (Bhatla et al.) patients' experiences decreased after hospitals had been purchased by private equity. In the same study they found that staff responsiveness was decreased, and patients were less likely to recommend that hospital after private equity purchased the hospital. Private equity is prioritizing profits over patient care and patient experience. Hospitals and healthcare systems do not have enough staff to provide quick responses to patients' needs. Profits are the main driver in policy in private equity owned hospitals and healthcare systems and without some increased regulations patient experiences are only going to get worse with private equity answering to nobody but themselves.
America will continue to see private equity grow in the healthcare sector unless it starts to make some changes. Private equity sees healthcare as a stable and reliable source of income. Healthcare is a necessity to basic life of all Americans and private equity knows this and desires to exploit that necessity. Healthcare systems and hospitals have already been purchased at an alarming rate over the past twenty years. This problem will not solve itself and will only continue to worsen.
Private equity sees the healthcare sector as a stable means of income. There are many hospitals and healthcare systems struggling financially in need of financial aid. Investors are a means to help struggling institutions, but the cost to patients, healthcare systems, and healthcare workers is great. Eventually the traditional hospitals will no longer be available. The only hospitals available will be owned by private equity with a few companies holding most of the control of healthcare systems and hospitals. This will lead to worsening healthcare across America.
With private equity owning more hospitals and healthcare systems, patients have less choice when it comes to their health. Patients also have less options with private equity prioritizing profitable treatments. Some treatments will become nonexistent, and patients with those conditions are more likely to have poor outcomes than currently. Patient experience will become less important as well, with the need to increase profits taking priority over patient experience. Healthcare staff will also continue to be reduced, which will be a detriment to both the staff and patients. Pivate equity will continue to focus on profits over anything else to continue to keep investors happy.
Private equity will squeeze hospitals and healthcare systems to make the highest profit. If private equity is allowed to continue with the current business practices, hospitals are going to be burdened with even more debt. Currently hospitals end up taking on even more debt after private equity invests in the hospitals. This is from the private equity investment firm selling the land and properties the hospital already owns. This article shows that "One tactic private equity firms use is to sell off the real estate of the hospitals, which can leave individual hospitals owing millions of dollars in rent on a building they no longer own" (Public Citizen 18). This problem will only continue to worsen if left unchecked and will eventually snowball out of control. Hospitals and healthcare systems will be forced to close when they are unable to pay their rent, leaving patients without access to healthcare. We need something to fix the problem of private equity in healthcare, but the solutions are not always simple.
One quick solution to the problem of private equity owning hospitals and healthcare systems is increased transparency. If the public had more knowledge of which hospitals were and weren't owned by private equity, it would be easier to make a choice on where to receive care. Having more transparent billing practices from private equity would also be a step in the right direction as a simple fix until a more permanent fix can be found. Knowing what private equity is doing with the hospitals and changes made to the hospital is vital information that would help keep private equity accountable and patients informed. The knowledge that the hospital or healthcare system you choose is owned by private equity will help you understand that you will possibly have a hospital or healthcare system with less staff, less equipment, and increased costs. This is just a simple fix to get started; there are more permanent and in-depth fixes needed to solve this crisis.
Another quick solution is to have an oversight committee formed to help keep private equities business practices honest. With a non-biased committee to oversee how private equity is operating hospitals and healthcare systems, the public can have faith that patient care will continue to be a priority. One quick way to bring oversight committees to healthcare systems is for either the hospital, public, or private equity firm to put one in place. Private equity will have someone step in and keep them accountable when they are overcharging services, working with too little staff, and incentivizing the use of unnecessary treatments and tests. These are only band-aid fixes, and more systemic fixes are necessary to completely solve the problem.
One major change according to (Cerullo et al. 1699) that needs to happen is the understanding of how private equity ownership impacts hospital behavior at both the federal and state levels. Federal and state levels of government need to have a better understanding of how private equity prioritizes profits over patients. The need to fully understand a problem is vital in creating permanent and strong solutions to the problem. With more understanding of a problem, it is less likely that private equity will be able to circumvent policies or find loopholes. Studies show that private equity fundamentally changes the way a hospital operates, and policymakers at both state and federal levels need to understand these changes (Cerullo et al. 1699-1703). Understanding is the key to implementing better laws and regulations, which is the long-term solution to the problem of private equity owning hospitals and healthcare systems.
The current policies, laws, and regulations are not adequate to control the greed of private equity in healthcare. We need new laws and regulations at both the states and federal levels to solve the problems created by private equity owning hospitals and healthcare systems. Private equity can get away with too much. Prices in hospitals and healthcare systems are soaring under private equity ownership. Hospitals are struggling with new debts as private equity sells the ground and buildings and requires the hospital to now pay rent on something it once owned. Patient care is worse in private equity owned hospitals with less staff. The only solution is to place robust laws, policies, and regulations that will prevent private equity from making each of these problems worse. New laws, policies, and regulations will help to ease the current problems created by private equity owning healthcare systems and hospitals.
America has a problem with private equity ownership of healthcare systems and hospitals. It leads to worse patient outcomes with increased infection and falls. Patients have worse experiences at private equity owned hospitals and healthcare systems and are less likely to recommend those facilities. Private equity owned hospitals and healthcare systems have less staffing and equipment with a priority to only offer profitable treatments. These problems will continue to worsen as private equity owns increasingly more hospitals and healthcare systems. We need robust new laws, policies, and regulations for private equity ownership in America. This is a problem that needs to be addressed sooner rather than later. The future of healthcare is at risk if we do nothing about this problem.
