Characteristics of Private Equity–Owned Hospitals in 2018

Abstract

LettersFebruary 2021Characteristics of Private Equity–Owned Hospitals in 2018Joseph Bruch, BA, Dan Zeltzer, PhD, and Zirui Song, MD, PhDJoseph Bruch, BAHarvard T.H. Chan School of Public Health, Boston, Massachusetts (J.B.), Dan Zeltzer, PhDThe Eitan Berglas School of Economics, Tel Aviv University, Tel Aviv, Israel (D.Z.), and Zirui Song, MD, PhDHarvard Medical School and Massachusetts General Hospital, Boston, Massachusetts (Z.S.)Author, Article, and Disclosure Informationhttps://doi.org/10.7326/M20-1361 SectionsAboutFull TextPDF ToolsAdd to favoritesDownload CitationsTrack CitationsPermissions ShareFacebookTwitterLinkedInRedditEmail Background: There are approximately 5200 community hospitals in the United States. About 1300 of them are investor-owned, for-profit hospitals whose owners are corporations, groups of physicians, or other private entities. Private equity firms use capital from individuals and institutions to invest in organizations. They are increasingly buying hospitals, which they typically plan to sell for a profit within 3 to 7 years after acquisition (1, 2). A recent study evaluated changes in hospital income, use, and quality associated with private equity acquisitions between 2005 and 2017 (2).Objective: To compare acute care hospitals owned by private equity firms with similarly ...References1. Casalino LP, Saiani R, Bhidya S; et al. Private equity acquisition of physician practices. Ann Intern Med. 2019;170:114-5. doi:10.7326/M18-2363 LinkGoogle Scholar2. Bruch JD, Gondi S, Song Z. Changes in hospital income, use, and quality associated with private equity acquisition. JAMA Intern Med. 2020. [PMID: 32833006] doi:10.1001/jamainternmed.2020.3552 CrossrefMedlineGoogle Scholar3. Coomer NM, Ingber MJ, Coots L; et al. Using Medicare Cost Reports to Calculate Costs for Post-Acute Care Claims. RTI Press; 2017. Google Scholar4. Centers for Medicare & Medicaid Services. HCAHPS: patients' perspectives of care survey. Accessed at www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/HospitalQualityInits/HospitalHCAHPS on 6 March 2020. Google Scholar5. Bollen KA, Ward S. Ratio variables in aggregate data analysis: their uses, problems, and alternatives. Sociol Methods Res. 1979;7:431-450. doi:10.1177/004912417900700405 CrossrefGoogle Scholar Author, Article, and Disclosure InformationAffiliations: Harvard T.H. Chan School of Public Health, Boston, Massachusetts (J.B.)The Eitan Berglas School of Economics, Tel Aviv University, Tel Aviv, Israel (D.Z.)Harvard Medical School and Massachusetts General Hospital, Boston, Massachusetts (Z.S.)Grant Support: By grant DP5-OD024564 from the Office of the Director, National Institutes of Health (National Institutes of Health Director's Early Independence Award to Dr. Song).Disclosures: Disclosures can be viewed at www.acponline.org/authors/icmje/ConflictOfInterestForms.do?msNum=M20-1361.Reproducible Research Statement: Study protocol: Not available. Statistical code: Available from Mr. Bruch (e-mail, [email protected]harvard.edu). Data set: Data on total acquisitions by private equity firm are available from Mr. Bruch (e-mail, [email protected]harvard.edu).Corresponding Author: Zirui Song, MD, PhD, Harvard Medical School, 180 Longwood Avenue, Boston, MA 02115; e-mail, [email protected]med.harvard.edu.This article was published at Annals.org on 29 September 2020. PreviousarticleNextarticle Advertisement FiguresReferencesRelatedDetails Metrics Cited byThe Consequences of Private Equity's Invasion of Surgical SubspecialtiesWorkforce Composition In Private Equity–Acquired Versus Non–Private Equity–Acquired Physician PracticesThe bystander effect: Impact of rural hospital closures on the operations and financial well‐being of surrounding healthcare institutionsAssociation of Private Equity Acquisition of Physician Practices With Changes in Health Care Spending and UtilizationPrivate equity in ophthalmology: lessons from other specialtiesPrivate Equity and Its Increasing Role in US HealthcarePrivate equity and its effect on patients: a window into the futureAssociation Between Hospital Private Equity Acquisition and Outcomes of Acute Medical Conditions Among Medicare BeneficiariesFinancial Impacts And Operational Implications Of Private Equity Acquisition Of US HospitalsSurgical Dermatology and Private Equity: A Review of the Literature and DiscussionPrevalence and performance of private equity-affiliated fertility practices in the United StatesCOVID-19 and Private Equity Investment in Health Care Delivery February 2021Volume 174, Issue 2Page: 277-279KeywordsData acquisitionDisclosureHealth careHealth care sectorInpatientsMedicarePatientsPopulation statisticsResearch and reporting methodsResearch design ePublished: 29 September 2020 Issue Published: February 2021 Copyright & PermissionsCopyright © 2020 by American College of Physicians. All Rights Reserved.PDF downloadLoading ...

Topics & Concepts