Health Affairs April 23, 2024
Prices paid by commercial health insurers have exploded in the past decade. Many attribute accelerating price growth to greater industry consolidation, from hospitals to physician practices to outpatient facilities. Commonly, when policy makers and stakeholders advocate for even narrowly applied provider price limitations, provider groups warn of reductions in care quality and access. This was the case during the debate over the No Surprises Act (NSA), as well as discussions on the public option, capping provider payment rates, and limiting outpatient facility fees. However, evidence is growing of another contributor to higher provider prices and lower quality of care: private equity (PE) in health care.
Quantitative evidence is mounting that compared to other forms of ownership, PE investments in nursing...
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