Medscape August 6, 2024
Contrary to claims that private equity (PE) firms aim to save troubled hospitals, a new study reported that they’ve tended to buy institutions with lesser debt than their counterparts.
A cohort of 242 acute care hospitals acquired for the first time by PE firms from 2005 to 2018 had lesser debt than a control sample of 870 hospitals, Sneha Kannan, MD, MS, of Massachusetts General Hospital, and Zirui Song, MD, PhD, of Harvard Medical School, Boston, reported in JAMA Internal Medicine.
“Other than that, these hospitals were fairly similar before acquisition,” Kannan told Medscape Medical News. “There was no difference on average in the hospitals that were acquired and those that weren’t in terms of earnings, operating margin, and clinical...
Today's Sponsors
Today's Sponsor