Common Problems Following Private Equity Buyouts

Adverse events increased after hospitals were acquired through private equity

  • In addition to increased adverse events, transfers to acute care hospitals also increased, with sepsis being the driver.
  • Central line infections increased in hospitals after private equity acquisition, even though these hospitals placed 16% fewer lines.
  • Increases in hospital-acquired infections may result from decreased staffing or changes in technique.
  • In-hospital mortality decreased slightly, but this may be explained by a shift in patient mix toward younger patients and increased transfers to other hospitals of patients with more complicated care needs.

Source

Kannan S, Bruch JD, Song Z. Changes in Hospital Adverse Events and Patient Outcomes Associated With Private Equity Acquisition. JAMA. 2023;330:2365-2375.