These days, if you end up in an emergency room, there's a good chance the hospital is owned or staffed by a private equity firm, which has drawn the attention of federal authorities.
There is currently a joint investigation by the Federal Trade Commission, Department of Justice, and Department of Health and Human Services into how private equity ownership of hospitals and physician staffing companies is affecting health care.
Separately, a Senate committee recently sent letters to several private equity firms that own or staff hospital emergency rooms, providing them with information on staffing decisions, patient care and safety, and more. asked to do so.
“Private equity ownership has increased dramatically in recent decades,” said Sabrina Howell of New York University's Stern School of Business. “About 25% of emergency departments are staffed by private equity-owned physician companies.”
That's more than double what it was just 10 to 15 years ago, said Lauren Adler, a fellow and deputy director of the Center for Health Policy at Brookings.
And it raises a number of concerns, including how private equity's focus on maximizing profits is impacting health care costs, staffing, and patient safety.
“There is clear evidence that these companies are raising prices for patients and consumers,” Adler said. “But the key question here is: What impact does this actually have on quality of care?”
As of now, there is no clear answer. But that's a big part of what the federal investigation is trying to uncover.
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