The U.S. Department of Health and Human Services (HHS) has released a report condemning the role of private equity firms in the declining quality and accessibility of healthcare services. The report highlights alarming trends, including the replacement of credentialed healthcare workers with less qualified staff. According to the findings, such practices have deadly consequences, including increased patient mortality rates.
A crucial study within the report reveals that private equity investments in nursing homes correlate with an 11% rise in patient deaths. The study also noted that insufficient competition within the healthcare market is linked to higher death rates for heart attack patients. The Biden administration's report is part of a broader initiative aimed at promoting competition across industries.
Private equity-owned hospitals often cut costs by reallocating hours to less qualified workers. A physical therapy assistant reported that unlicensed workers at one such hospital wore the same scrubs as licensed professionals, misleading patients and families.
“This is intentional fraud because patients, families and doctors think [the unlicensed techs] are licensed,” – A physical therapy assistant
The report also discusses the challenges patients face in determining whether their healthcare providers have been acquired by private equity. Hannah Garden-Monheit from the administration's team highlighted the lack of disclosure and documentation requirements, making it difficult for patients to access this information. The HHS aims to change these requirements to enhance transparency.
“Private equity investors don’t announce that they’ve acquired something. They often keep the old name of the firm. They’re like a brain virus or a cancer inside the body of this new firm. It doesn’t announce itself until it gets very late,” – Martin Kenney
A physician who contributed to the report described the pressures faced after her practice was acquired by private equity. She was forced to see an overwhelming number of patients daily with insufficient support.
“was forced to see 45 patients daily with 1 medical assistant. This was unsafe … I was routinely told by patients they called with problems and never heard back … I knew that I was going to be the one to go down when something bad happened and I left because I refused to take that fall.” – A physician
Despite these findings, advocacy for reform continues. The Federal Trade Commission (FTC) has initiated actions against private equity firms for anti-competitive practices within the healthcare sector. This effort aligns with a broader governmental approach to curb exploitative practices and promote fair competition.
The report, which was initially removed during the Trump administration, reflects a significant shift in policy under President Biden. It underscores an "all government approach" aimed at addressing systemic issues within healthcare.
“Thanks to the efforts of the now prior administration, we had actually seen private equity interest in healthcare start to decline,” – Hannah Garden-Monheit
Private equity firms have been criticized for prioritizing profits over patient care, leading to decreased healthcare quality, reduced access, and increased costs. Healthcare workers, often on the front lines, are acutely aware of these impacts.
“Perhaps the most consistent comments were those expressing frustration with private equity-led acquisitions in health care.” – The report
While these revelations are troubling, they also serve as a call to action. Hannah Garden-Monheit emphasized the importance of monitoring future administrative strategies.
“It’ll be really important to see what the new administration’s approach is,” – Hannah Garden-Monheit