Patients in hospitals that have been acquired by private equity firms are more likely to experience harm, such as falls and infections, according to a recent study led by researchers at Harvard Medical School. The findings, published in JAMA, shed light on the impact of private equity takeovers on the quality of patient care. The study analyzed data from over 600,000 fee-for-service Medicare hospitalizations between 2009 and 2019.

The researchers compared outcomes for patients in 51 private equity hospitals to those in 259 similar hospitals that were not acquired by private equity. After a hospital was acquired by a private equity firm, Medicare patients experienced a 25% increase in hospital-acquired complications compared to before the acquisition. Furthermore, patients had a 27% increase in falls and a 38% increase in bloodstream infections caused by central lines.

Interestingly, despite these concerning findings, the study noted a small decrease in hospital deaths at private equity hospitals. This could potentially be attributed to demographic factors and the transfer of patients out of these hospitals. However, the decrease in deaths dissipated within a month after discharge.

The study highlighted the worrying trend of financial considerations overshadowing patient care and safety in privately-owned hospitals. Private equity firms often focus on maximizing profit through high-revenue procedures, cost-cutting, and financial engineering. These practices can create perverse incentives that prioritize profit over patient well-being.

The growing role of private equity in healthcare has raised concerns among policymakers, insurance companies, and public sector bodies. While some argue that struggling hospitals can benefit from capital and management expertise provided by private equity firms, the study suggests that these financial transactions may have detrimental effects on patient health outcomes and quality of care.

In response to these concerns, the researchers and policymakers have called for increased transparency and regulation of private equity acquisitions in healthcare. Currently, only acquisitions over $111.4 million must be reported, leaving many physician practice acquisitions unaccounted for. The authors of the study emphasized the importance of understanding how the corporatization of healthcare delivery impacts patients, providers, investors, taxpayers, employers, and insurers.

The findings of this study contribute to the ongoing debate surrounding private equity's role in the healthcare system. With $1 trillion invested in the sector over the past decade, the impacts of private equity acquisitions are significant and warrant further scrutiny. Protecting patient safety, healthcare resources, and ensuring quality care should be paramount concerns for all stakeholders involved.