A study published in Health Affairs Scholar found that private equity firms owned 3.5% of U.S. short-term acute care hospitals in 2024, representing 2.5% of hospital beds and 1.8% of inpatient discharges. Researchers identified 556 hospitals acquired through 139 private equity deals between 2000 and 2024.
The study identified three key patterns: private equity’s overall share of hospital ownership remains relatively small, ownership frequently changes, and investments are concentrated in specific geographic markets. Approximately two-thirds of acquired hospitals changed ownership within five years. In 2023, more than two-thirds of Americans lived in hospital referral regions without a private equity-owned hospital.
The researchers cautioned that the findings do not establish whether private equity ownership improves or worsens patient care. The analysis covered short-term acute care hospitals and did not assess private equity ownership of physician practices, specialty facilities or post-acute care providers.
The authors argue that healthcare policy should focus on market concentration, payment incentives, pricing transparency and patient choice rather than treating ownership structure alone as an indicator of care quality.