Private equity’s $1 trillion injection into the US healthcare sector in the past decade, marked by over 8,000 deals, has alarming consequences. A recent Harvard Medical School-led study reveals that hospital care deteriorates post-private equity acquisition. Published in the Journal of American Medical Association (JAMA), the research finds a 25% increased likelihood of patient harm at private equity-owned facilities. While economic costs like “higher charges, prices, and societal spending” are acknowledged, the study emphasizes the understudied aspect of declining clinical care quality. The business model often involves debt accumulation, pressuring hospitals to cut costs, potentially compromising patient well-being. Understanding this impact is crucial as private equity’s influence in healthcare grows.
