Private Equity and Hospital Ownership Risks

Private equity firms owning hospitals might generate substantial profits for investors. However, this practice creates risks for patients, communities, and healthcare providers.

By Heather Prendergast, The Hill – A nonpartisan publication covering government affairs and the intersection of politics and business.

For over two decades, I have served in emergency departments across Chicago. I have witnessed the impact on neighborhoods when a hospital shuts down.

Ambulances have to travel longer distances. Emergency rooms become crowded quickly. Patients end up in worse health conditions because timely care was unavailable. Surprisingly, these closures often occur not due to financial instability of the surrounding community, but because hospital assets might yield more profit through liquidation than operation.