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Serious Medical Errors Rose After Private Equity Firms Bought Hospitals

Dec 26, 2023

A new study shows an increase in the rate of inpatient complications, including infections and falls, though patients were no more likely to die.


Good read on the impact on healthcare of certain types of financing. One salient quote, "Some private equity owners may be overly eager to cut costs, leading to a decline in the quality of care, he said. “It’s about the style of investing,” he said. “It’s about the aggressiveness and short-time-frame profits and returns on investment that are sought.” In the cases where they do not pursue this strategy, private equity can be positive, Dr. Blumenthal added: “It brings capital. It brings innovation.”

This sounds is about right to me. No matter the source, funds are tethered to expectations and agendas. Values alignment on who funds what can be extremely important for long term sustainability and innovation. Or it can crash a previously effective operation. 

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