In a recent study examining the impact of private equity acquisitions on hospital quality of care and patient outcomes, alarming findings have emerged. The research, conducted using 100% Medicare Part A claims data, reveals a disturbing correlation between the takeover of hospitals by private equity firms and a rise in hospital-acquired adverse events.

The study, which analyzed data from 662,095 hospitalizations at 51 private equity-acquired hospitals and 4,160,720 hospitalizations at 259 matched control hospitals, examined hospital stays between 2009 and 2019. The findings raise concerns about the consequences of private equity involvement in healthcare.

One of the key conclusions of the research is the association between private equity acquisition and a 25.4% increase in hospital-acquired conditions. Among these conditions, falls and central line-associated bloodstream infections were the primary contributors. Medicare beneficiaries admitted to private equity hospitals experienced a higher rate of hospital-acquired conditions compared to those treated at control hospitals.

In detail, the study reveals an alarming 27.3% increase in falls at private equity hospitals and a shocking 37.7% increase in central line-associated bloodstream infections. Interestingly, private equity hospitals placed 16.2% fewer central lines, yet the infections still surged. Additionally, surgical site infections doubled from 10.8 to 21.6 per 10,000 hospitalizations at private equity hospitals, despite an 8.1% reduction in surgical volume. Control hospitals, on the other hand, saw a decrease in surgical site infections, although the sample size of surgical hospitalizations limited the statistical precision of the comparison.

Moreover, the study suggests that private equity hospitals admitted a slightly younger patient population and had fewer Medicare and Medicaid dual eligible beneficiaries. It was also found that patients treated at private equity hospitals were more frequently transferred to other acute care hospitals after shorter hospital stays. Surprisingly, in-hospital mortality showed a small decrease at private equity hospitals compared to control hospitals, but this decline vanished within 30 days after hospital discharge.

These findings raise serious concerns about the quality of inpatient care and the impact of private equity acquisitions on healthcare delivery. The study underscores the need for additional research and careful evaluation of the consequences of private equity involvement in healthcare systems.

The implications of this research are far-reaching, urging healthcare stakeholders to carefully consider the potential risks associated with private equity acquisitions. Ensuring patient safety and maintaining high-quality care must remain a top priority in the face of evolving healthcare ownership structures.

Further investigation is needed to understand the underlying factors contributing to the rise in adverse events and to develop strategies to mitigate their occurrence. The findings of this study highlight the urgency with which policymakers and healthcare professionals must address the potential dangers arising from private equity involvement in hospitals.

As the debate surrounding the impact of private equity in the healthcare industry continues, these research findings serve as a stark reminder of the critical importance of putting patient welfare at the forefront during any changes in hospital ownership structures.