Private equity and corporate ownership of U.S. health care—highlighted by the collapse of Steward Health Care—has sparked new scrutiny over the industry’s growing pursuit of profits at the expense of patient care. Steward’s collapse, after being flipped from a struggling non-profit system to a private equity-backed for-profit entity and then saddled with high rents by a real estate investment trust, left patients underserved and staff displaced. This case is not isolated, as more health systems and physician practices are acquired by private equity and other corporate interests focused on quick returns. Research shows that these takeovers often lead to cost-cutting measures, reduced staffing, poorer quality care, and, in some instances, hospital closures, disproportionately harming low-income and minority communities.
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