Becker's Healthcare July 30, 2024
A recent JAMA network study found that hospital assets decreased 24% after being acquired by private equity. The study comes after a recent Becker’s LinkedIn poll found that 50% of respondents feel that PE ownership has a “mostly negative” effect on hospitals.
The study used Medicare cost reports from 2006 to 2021 to assess hospitals’ total capital assets, region number of beds, year acquired last, rurality, teaching status and Medicaid inpatient discharge shares.
It then matched acquired hospitals to 10 non-acquired control hospitals, using exact matching on region, bed-size category, year and nearest neighbor matching on total capital assets for the year acquired.
“We analyzed assets of acquired and control hospitals in two years before and after...
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