Profit Over Patients: Private Equity in Psychiatry - PsyQ Episode 22

In this episode, we dissect the alarming 75.6% rise in private equity (PE) ownership of US psychiatric hospitals and unpack the central paradox from a landmark 2025 JAMA Psychiatry study: how do these facilities operate with significantly fewer nurses and social workers, yet report better outcomes on official quality metrics like restraint use and readmissions? We deconstruct this quality illusion, revealing how self-reported data, administrative gaming, and the strategic "cream-skimming" of less-ill patients can mask the erosion of care. Drawing stark warnings from the devastating impact of PE in other sectors—where the model is linked to increased patient mortality—we provide a critical guide for clinicians to navigate a healthcare landscape where the pursuit of profit often conflicts with the mission of healing. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit upathak.substack.com