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US health department condemns private equity firms for role in declining healthcare access
- The role of private-equity in causing decline in healthcare quality and adding to the overall cost of access have been highlighted in this recently published report by the US Department of Health and Human Services.
- Problems arise from non-credentialed staffing and aggressive staffing cuts that have mostly led to arising death rate and increases in health costs for patients.
- An 11% increase in patient deaths was recorded in private equity investments in nursing homes. The report highlights that there is a reduction of competition in the healthcare market, which increases the heart attack death rate.
- A physician who was bought out by private equity claims that she faced pressure to see 45 patients daily with 1 assistant, and many patients reported that their problems were never answered.
- HHS has documented that private equity-backed firms frequently replace credentialed workers with less qualified workers.
- HHS has been working on disclosure and documentation requirements, but this is a work in progress.
- Emergency departments have been identified as primary targets of private equity.
- The administration's all government approach to promoting competition would monitor private-equity investments and their impact on healthcare industries.
- The report is a pointer to the sorry state of US healthcare following an unregulated private equity investment.
- The FTC is concerned that the new administration may favor moneyed interests and create a dangerous private equity bonanza.
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