How private equity's increasing role in health care is affecting patients | PBS

Summary:

Economics correspondent Paul Solman is exploring the impact on communities in Massachusetts after a private equity firm bought struggling hospitals. In his second report, he looks at how private equity's increasing role in health care is affecting patients.

Excerpt:

Paul Solman:

So, now the key question, the results of private equity in health care.

Well, Dr. Song and associates have studied Medicare data of more than half-a-million patients in hospitals after private equity takeovers. Their findings?

Dr. Zirui Song:

On average, across the country, private equity acquisitions of hospitals have led to a roughly 25 percent increase in patient adverse events.

Paul Solman:

Really? Like what?

Dr. Zirui Song:

This was driven by an increase in central line-associated bloodstream infections and an increase in patient falls, as well as doubling roughly of surgical side infections relative to a control group or comparison group of hospitals that looked like the private equity hospitals, but were not acquired by private equity firms.