Originall broadcast September 5, 2024
Did you know private equity now owns one-third of private hospitals in the country and the percentage is growing? Private equity is a controversial type of financing typically seen in the technology and media sectors that’s now attracted to health care.
It’s a trend that greatly troubles Erin Fuse Brown. She’s a professor of health services, policy and practice at Brown University’s School of Public Health and its Center for Advancing Health Policy through Research.
She explains to “Conversations on Health Care” hosts Mark Masselli and Margaret Flinter that private equity’s practice is to cut wages and employees and substitute highly trained staff with lower skilled substitutes. She says, “It means worse patient care in many instances and that is what we see is leading to the greater risks of mortality and adverse events for hospital and nursing home patients after a private equity acquisition.”
Fuse Brown also discusses why it’s so difficult to figure out who actually owns your hospital and the latest details about the effort to ban employees’ noncompete bans.
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