Study demonstrates that private-equity owned hospitals had worse outcomes in ER
September 28, 2025
NBC News highlighted a recent study showing that "After hospitals were acquired by private equity firms, patient death rates in the emergency departments rose by 13% compared with similar hospitals." The research analyzed 7 million emergency department visits over a ten-year period at 49 private equity-owned hospitals and 293 hospitals that had not been acquired by private equity. The article reports that "After hospitals were acquired by private equity, the number of full-time employees fell by an average 11.6% compared with non-private equity facilities, the research found, and salary expenditures in the emergency departments and intensive care units declined by 18% and 16%, respectively."
One co-author commented that "Most hospital care in the country remains a face-to-face, human, labor-intensive endeavor, especially in emergency departments and ICUs, ... When human labor is cut to this extent in staffing sensitive areas of the hospital, patient harm can plausibly ensue, including mortality." It seems plausible that someone will be able to figure out a more efficient staffing model at some point, but in the meantime, the hospitals that cut expenses and experience worse patient outcomes should not be rewarded. At the very least, publishing quality metrics might allow some patients to make more informed choices.