Hospice News October 9, 2025
Hospices owned by private equity firms yield higher profit margins and spend fewer dollars on direct patient care, a new study in Health Affairs found.
For the study, researchers examined revenue and expensed data among providers using four types of ownership models: PE-backed, publicly traded companies, other for-profits and nonprofits. They found that nonprofits spend more on patient care, often driven by differences in nursing salaries.
PE-owned agencies reported the highest profits and lowest spending on patient care and nonsalary administrative services relative to publicly traded companies and other for-profit hospices.
“Our findings suggest that PE-owned hospices may follow distinct operational strategies, emphasizing nursing facility-based care and administrative efficiency while limiting direct patient care investments,” the study indicated. “Reduced spending...
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