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Impact of Private Equity on Hospital Operations

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Democracy Dies in Darkness. The ownership of hospitals by private equity firms can yield substantial profits for investors. However, it poses significant risks to patients, communities, and healthcare providers.

Date: September 27, 2026

Author: Heather Prendergast, The Hill

The Hill is a nonpartisan publication, offering insights into government operations and the intersection of politics and business.

Observations from Emergency Departments

Over twenty years spent in Chicago’s emergency departments has shown the consequences of losing essential hospitals in dependent neighborhoods. When these facilities close, ambulances face longer drive times, waiting rooms become overcrowded, and patients often reach care in more severe conditions due to previous unavailability.

Initially, hospital closures were thought to reflect insufficient neighborhood support. Yet, experiences reveal that closures often result from asset valuation, where the hospital’s worth may exceed operational profits, driving decisions to dismantle instead of sustain the facility.

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