Study Links Private Equity Hospital Takeovers to ER Deaths
The hospital you choose in an emergency can make a bigger difference than you might think. A new study, reported on by Newsweek, found that hospitals taken over by private equity firms have higher death rates than non-PE owned hospitals.
The study, conducted by researchers from Harvard Medical School, the University of Pittsburgh, and the University of Chicago, analyzed more than 1 million ER visits and 121,000 ICU hospitalizations across 49 private equity–acquired hospitals over a ten-year period (2009–2019). For comparison, they reviewed more than 6 million ER visits and 760,000 ICU hospitalizations from 293 control hospitals. All data came from Medicare claims and cost reports.
The results were eye-opening. Medicare patients in private equity–owned hospitals had higher mortality rates, with ER deaths rising 13% after acquisition. These patients tended to be older, sicker, and more vulnerable, making the impact of staffing changes especially severe.
One of the study’s clearest findings was the effect of financially motivated cost-cutting. After private equity firms acquired hospitals, emergency department salaries dropped by an average of 18%, signaling reduced staffing and diminished capacity to deliver timely care. In 2023, preventable adverse events, including infections, rose by 25%, possibly tied to these staffing reductions.
ICU salaries fell by 16%, and while ICU mortality did not rise, the sickest patients were transferred out at higher rates -- patients needing intubation, dialysis, or blood transfusions. These transfers raise troubling questions about whether critical patients are being moved not because it’s best for them, but because hospitals no longer have the staff or resources to care for them.
According to the report, while private equity firms often claim they can turn around failing hospitals, research paints a different picture. A 2024 study found that private equity firms tend to buy hospitals that are already financially healthy. This allows the firms to take on new debt while maximizing revenue, but not necessarily improving care. In practice, the push for profit may lead to thinner staffing, reduced oversight, and poorer outcomes for the people who rely on these hospitals most.
Delayed care or another poor decision in the ER or any medical setting could result in severe and even life-threatening consequences. Fortunately Tom Duffy is a champion for those injured by medical malpractice. In 2024, he obtained the highest medical malpractice verdict in the Commonwealth of Pennsylvania. If you need a top emergency room injury attorney, please contact us to set a time to speak today.