The recent study published in the Journal of American Medicine has raised significant concerns about the impact of private equity acquisitions on hospital care quality. The study, utilizing comprehensive data from Medicare Part A claims, revealed a worrying 25.4 percent increase in hospital-acquired conditions, notably falls and central line-associated bloodstream infections, within three years following private equity takeovers of hospitals.
This finding is particularly alarming as it suggests a deterioration in patient safety standards in these hospitals. The study also noted that patients at private equity-owned hospitals were generally younger and less likely to be dual eligible for Medicare and Medicaid. Despite this, which indicates a lower-risk patient population, the increase in hospital-acquired conditions is stark.
Interestingly, the study observed a slight decrease in in-hospital mortality rates among these patients, but this improvement vanished within 30 days post-discharge. This raises questions about the long-term effectiveness and quality of care provided in these settings.
In the backdrop of these findings, the Lower Costs, More Transparency Leadership Act recently passed the House. This legislation, previously met with resistance, particularly from Democrats like Rep. Richard Neal (D-Mass.), aims to address various healthcare system issues but notably lacks provisions concerning private equity ownership of health facilities.
The bill’s focus includes banning spread pricing by pharmacy benefit managers and implementing site-neutral payment reforms in Medicare. These measures are part of a broader effort to increase transparency and reduce costs in healthcare.
Rep. Frank Pallone Jr. (D-N.J.) hailed the bill as a significant step forward, emphasizing its potential to empower consumers and employers with better information about healthcare pricing. According to Pallone, this transparency is crucial for enabling individuals to make more informed decisions and potentially save money on healthcare expenses.
The juxtaposition of the study’s findings with the legislative developments highlights a complex landscape in healthcare management and patient safety. It underscores the need for continuous scrutiny and potential regulatory interventions to ensure that hospital ownership changes, particularly those involving private equity firms, do not adversely affect patient care quality.
