Fierce Healthcare November 2, 2021
Hospitals recently acquired by private equity firms tend to adopt profitable new services and technologies more quickly than their unacquired counterparts, according to a new analysis in Health Affairs.
Across a sample of roughly 5,000 hospitals reviewed from 2004 to 2018, researchers also found that the private-equity-acquired hospitals were, to a lesser extent, more likely to avoid or ditch services with “unreliable” revenue streams or competition from other nonprofit hospitals.
The exceptions to these top-level findings generally fell in line with broader shifts in care delivery, the researchers noted.
For instance, private-equity-acquired hospitals are more likely to offer psychiatric emergency services—a service line that was previously considered to be unprofitable but was later “buoyed” by Affordable Care Act expansions. Those...
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