Summary:
Economics correspondent Paul Solman is exploring the impact on communities in Massachusetts after a private equity firm bought struggling hospitals. In his second report, he looks at how private equity's increasing role in health care is affecting patients.
Excerpt:
Paul Solman:
So, now the key question, the results of private equity in health care.
Well, Dr. Song and associates have studied Medicare data of more than half-a-million patients in hospitals after private equity takeovers. Their findings?
Dr. Zirui Song:
On average, across the country, private equity acquisitions of hospitals have led to a roughly 25 percent increase in patient adverse events.
Paul Solman:
Really? Like what?
Dr. Zirui Song:
This was driven by an increase in central line-associated bloodstream infections and an increase in patient falls, as well as doubling roughly of surgical side infections relative to a control group or comparison group of hospitals that looked like the private equity hospitals, but were not acquired by private equity firms.
Negatively. It affects them negatively, like pretty much everything private equity does.