What Happened After Private Equity Bought A Hospital? (Forbes)

A new study of 1,000+ hospital acquisitions over 19 years challenges the common belief that private equity harms hospitals: PE-owned hospitals were no more likely to close, maintained quality of care, and restored staffing levels for clinicians after initial cuts. The biggest, lasting change was a 20–30% reduction in administrative staff and wages, especially in nonprofits, while clinical wages held steady. Patient outcomes (mortality, readmissions) did not worsen, though colonoscopy prices rose nearly 30% due to ACA’s zero cost-sharing policy. Researchers argue PE often rescues struggling hospitals by improving efficiency, exploiting policy loopholes, and boosting marketability—potentially benefiting taxpayers and patients more than if distressed facilities failed.