Patient Care Experience Worse After Private Equity Acquisition of Hospitals
FRIDAY, Jan. 10, 2025 -- After private equity acquisition of U.S. hospitals, global measures of patient care experience worsened, according to a study published online Jan. 9 in the Journal of the American Medical Association.
Anjali Bhatla, M.D., from the Beth Israel Deaconess Medical Center in Boston, and colleagues examined whether the acquisition of hospitals by private equity firms was associated with changes in measures of patient-reported experience. Seventy-three U.S. hospitals newly acquired by private equity firms and 293 matched control U.S. hospitals were identified in the study from 2008 through 2019. Changes in patient experience measures three years before to three years after private acquisition were assessed.
The researchers found that during the postacquisition period versus the preacquisition period, the percentage of patients rating hospitals as a 9 or 10 decreased at private equity hospitals (65.0 to 65.2 percent) compared with control hospitals (66.2 to 69.2 percent), with a difference-in-differences estimate of −2.4 percentage points. At private equity-acquired versus control hospitals, the percentage of patients who would definitely recommend the hospital also decreased (66.9 to 65.5 percent versus 68.2 to 69.3 percent; difference-in-differences estimate of −2.1 percentage points). The difference between private equity-acquired and control hospitals in these global measures increased over time and was largest in year 3 after acquisition (−5.2 percentage points and −4.4 percentage points, respectively).
"Improving patient-centered care is a major policy priority, and these findings raise concerns about the implications of private equity acquisitions on patient care experience at U.S. hospitals," the authors write.
One author disclosed ties to Abbott Vascular and Chambercardio.
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