A bipartisan Congressional investigation found that private equity-backed U.S. hospital systems deteriorated in patient care as their owners profited. The inquiry focused on Apollo Global Management's Lifepoint Healthcare and Leonard Green & Partners' Prospect Medical Holdings. The investigation revealed patient safety violations, understaffing, and rising costs linked to private equity's debt-laden deals. Academic studies indicate that private equity firms' involvement in healthcare leads to higher costs for patients and payers, such as Medicare, while contributing to lower care quality. A 2023 study found that patients at private equity-owned hospitals experienced more infections and falls.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02A bipartisan congressional investigation found that private equity-backed U.S. hospital systems
00:07deteriorated in patient care as their owners profited.
00:10The inquiry focused on Apollo Global Management's LifePoint Healthcare
00:14and Leonard Green and Partners' Prospect Medical Holdings.
00:16The investigation revealed patient safety violations,
00:20understaffing, and rising costs linked to private equity's debt-laden deals.
00:24Academic studies indicate that private equity firms' involvement in healthcare
00:28leads to higher costs for patients and payers, such as Medicare,
00:32while also contributing to lower care quality.
00:34A 2023 study found that patients of private equity-owned hospitals
00:38experienced more infections and falls.
00:40For all things money, visit Benzinga.com slash GSTV.