The Role of Private Equity In Health Care

Late last month, the White House called out private equity firms in a fact sheet on the safety and quality of nursing homes."Private equity firms have been buying up struggling nursing homes, and research shows that private equity-owned nursing homes tend to have significantly worse outcomes for residents," the fact sheet reads, adding that "Private equity firms’ investment in nursing homes has ballooned from $5 billion in 2000 to more than $100 billion in 2018, with about 5% of all nursing homes now owned by private equity firms." Listen to Health Affairs' Kathleen Haddad and Rob Lott discuss the role of private equity in health care service lines.Related Links:FACT SHEET: Protecting Seniors by Improving Safety and Quality of Care in the Nation’s Nursing Homes (White House)Private Equity Investments In Health Care: An Overview Of Hospital And Health System Leveraged Buyouts, 2003–17 (Health Affairs)Hospital Service Offerings Still Differ Substantially By Ownership Type (Health Affairs)Private Equity Acquisition And Responsiveness To Service-Line Profitability At Short-Term Acute Care Hospitals (Health Affairs)Podcast: Jill Horwitz Questions the Role of Nonprofit Hospitals (A Health Podyssey)Subscribe: RSS | Apple Podcasts | Spotify | Castro | Stitcher | Deezer | Overcast