Medical Economics May 6, 2021
Acquired hospitals showed better operating margins than similar non-acquired hospitals
The journal Health Affairs looked at private equity backed hospital acquisitions from 2003-2017 and what effects it has had on the financial and operational aspects compared to those not acquired.
In 2000, the valuation of private equity deals in the health care sector were less than $5 billion, but by 2018, that had increased to more than $100 billion. Acquisitions ranged from physician practices to mobile application companies. This increased interest by private equity was likely fueled by a perception that health care is recession-proof, a projected increase in demand because of an aging population, or the operational inefficiencies of health care organizations, according to the authors.
In 2017, private-equity...
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