Private Equity Acquisition of Hospitals Leads to Decline in Patient Care Experience
A recent study published in JAMA by health policy experts at Beth Israel Deaconess Medical Center (BIDMC) has shed light on the negative impact of private equity (PE) acquisition of US hospitals on patient care experience. The researchers, led by Rishi Wadhera, MD, MPP, and Anjali Bhatla, MD, found that patient care experience worsened after hospitals were acquired by private equity firms, as did patient-reported staff responsiveness.
The study analyzed data from 73 US hospitals newly acquired by private equity firms and compared them to 293 matched control (non-acquired) US hospitals from 2008 to 2019. The researchers looked at various measures of patient care experience, including overall hospital rating, willingness to recommend the hospital, and patient-reported staff responsiveness, doctor and nurse communication, and hospital environment.
The findings revealed that patient care experience and staff responsiveness significantly declined after PE acquisition of hospitals. According to Wadhera, patients play a crucial role in evaluating the quality of care provided by a hospital, and their feedback is essential in assessing the overall care experience.
Bhatla emphasized the importance of patient experiences, stating that poor patient experiences can lead to slower recovery from illness, medication nonadherence, and increased healthcare utilization. The study also found that PE-acquired hospitals continued to experience worsening patient care over time, suggesting that profit-driven changes made by private equity firms may have accumulating negative effects.
With private equity investors spending over $200 billion on healthcare acquisitions in 2021 and $1 trillion in the past decade, there is a growing concern about the impact of PE acquisitions on patient care quality. The researchers called for greater transparency, monitoring, and regulatory oversight to ensure that patients are protected from deteriorating care standards.
This study adds to the growing body of research on the effects of private equity acquisitions in the healthcare sector. Previous research by Wadhera highlighted the rise of private equity firms acquiring outpatient cardiology practices, noting that such acquisitions could potentially worsen the quality of care for patients.
In conclusion, the study underscores the need for continued research and oversight to monitor the impact of private equity acquisitions on patient care quality. As the presence of private equity in healthcare continues to grow, safeguarding patient care experiences should be a top priority to ensure the delivery of high-quality care to all patients.
