Private Equity Impact in Healthcare

Complications

Private equity has been growing its influence in the US economy. Private equity investors have been buying up suppliers of healthcare instruments since the 1970s. Over the last 20 years, the this industry has significantly stepped up its purchases of physician practices and hospitals.

A recent Harvard study looked at complications in hospitals under private equity ownership compared to other forms of ownership. This was a big study, looking at almost 5 million hospitalizations over 10 years. Despite a shift towards younger and healthier patients, private equity-owned hospitals had significantly more dangerous complications than other hospitals.

Surgical complications were up more than 100% per patient! And while private equity-owned hospitals placed fewer central lines, they had much higher infection rates per central-line-placed.

Bar chart showing complications in private equity owned hospitals

Source: Harvard