How private equity is reshaping Pennsylvania health care
- Researchers from German economic institutions examined data on more than 1,200 hospital buyouts by private equity firms in the United States from 2001 through 2018.
- This research responds to concerns about private equity's growing role in health care amid reports of hospital closures and financial strain in Pennsylvania.
- The findings show private equity ownership improves hospital efficiency by cutting administrative staff by 33% without increasing closures or harming patient outcomes.
- Professor Merih Sevilir emphasized that this careful strategy enhances operational efficiency while maintaining high standards of patient care, focusing on simplifying administrative processes and safeguarding medical personnel.
- These results suggest private equity can enhance operational oversight in hospitals, though declines in patient satisfaction and calls for greater transparency remain central concerns.
11 Articles
11 Articles
Private equity ownership improves hospital efficiency without harming care
New research by ESMT Berlin and the Halle Institute for Economic Research (IWH) shows that private equity (PE) acquisitions lead to substantial operational efficiency gains in hospitals, challenging common public concerns.
Research claims that private ownership actually boosts hospital performance
New research by ESMT Berlin and the Halle Institute for Economic Research (IWH) shows that private equity (PE) acquisitions lead to substantial operational efficiency gains in hospitals, challenging common public concerns. The study reveals that hospitals acquired by PE firms significantly reduce costs and administrative staff without increasing closure rates or harming patient care.


Private equity investors in Pa. health care don’t prioritize patients, critics say
This story first appeared in How We Care, a weekly newsletter by Spotlight PA featuring original reporting and perspectives on how we care for one another at all stages of life. Sign up for free here. Investors who buy up and sell health companies are drawing scrutiny from critics worried about diminished care and higher costs for patients. Private equity firms, as these investment groups are called, have a record of cutting services at health p…
How private equity is reshaping Pennsylvania health care
Investors who buy up and sell health companies are drawing scrutiny from critics worried about diminished care and higher costs for patients. Private equity firms, as these investment groups are called, have a record of cutting services at health providers and leaving them with debt or gaps in care. Sometimes, the providers close, which is the case for Crozer Health’s recently shuttered hospitals in Delaware County. They were owned by the privat…
How Private Equity Killed Toys R us \ stacker news ~econ
Of all the sad things to end, I think Toys'R'us has to be up there. Twice yearly visits for xmas and birthdays are still core memories I remember with joy. That place was magical when I was a kid. But I didn't realise how they went out of the business, I thought maybe it was amazon and people's shopping habits changing etc - until this 4-minute clip popped up ~ https://www.youtube.com/watch?v=_e5w62j5u2w I get we have the free market and all tha…
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