RevCycle Intelligence July 31, 2024
Hospitals acquired by private equity firms tend to be more financially stable compared to comparable non-private equity hospitals, according to a new study.
A new study suggests that private equity firms aren’t necessarily going after struggling hospitals, but hospitals with more financial stability prior to acquisition.
The study published in JAMA Internal Medicine by researchers from Massachusetts General Hospital and Harvard Medical School analyzed over 200 acute care hospitals acquired by private equity firms for the first time between 2005 and 2018. Researchers then compared Medicare Cost Reports for the hospitals against 870 control hospitals not acquired by private equity firms.
The study showed that private equity-owned hospitals during the period, on average, had similar earnings and operating margins before...
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