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Whether private equity (PE) is friend or foe in the healthcare market is still a subject of intense debate. A new study of emergency department (ED) visits published in the Annals of Emergency Medicine found that patient mortality and outside transfers increased in PE-owned hospitals once the hospital was acquired. These EDs experienced 7 additional deaths per 10,000 visits after acquisition relative to control (13.4% increase from a raw baseline of 52.4 deaths per 10,000; P = 0.009), based on data from more than 1 million visits in 49 PE-backed EDs and 6 million visits in 293 matched control hospitals not owned by PE. Additionally, patients experienced a 4.2% increase in transfers to other acute care hospitals after acquisition relative to control. Also after acquisition, hospitals on average reduced salaries and staffing in their EDs and intensive care units, the authors concluded. No significant changes were observed in non-ED inpatient mortality.
Varied investment thesis: Certainly, PE firms vary in their approaches, just as each ED may experience market changes that affect their operations independent of ownership. Some observers believe PE can bring the investment needed for hospitals to achieve economies of scale or build out technology resources that otherwise would be out of reach, for example. Such investments can improve quality while also reducing costs. About 18% of urgent care centers are owned by PE, and the trend shows recent growth. Read more from the JUCM archive: Private Equity Investment In Urgent Care, By Number Of Centers, 2025