Impact of Private Equity on Hospitals

Private equity ownership of hospitals can generate substantial profits for investors. However, this practice may place patients, communities, and healthcare providers in jeopardy.

Heather Prendergast, The Hill

The Hill is a nonpartisan publication focused on the workings of government and the intersection of politics and business.

Having spent over two decades in emergency departments around Chicago, I’ve observed the disruptions caused by the closure of a hospital vital to its neighborhood. With a hospital’s closure, ambulances travel longer distances, waiting rooms become crowded, and patients often present with more severe conditions due to the lack of timely care.

During my career, I didn’t foresee that such events would occur not because hospitals couldn’t be supported by their communities, but because their assets might be considered more valuable when liquidated than when operational.