Private equity in the hospital industry

• 成果类型: Article
• 署名作者: Gao, Janet; Kim, Yongseok; Sevilir, Merih
• 署名单位: Georgetown University; Tulane University; European School of Management & Technology
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2025.104107
• 发表日期: 2025
• 关键词: private equity; Hospital acquisitions; EMPLOYMENT; Operational efficiency; Real patient outcomes; hospital prices

摘要

We examine the survival prospects, employment profiles, and patient outcomes at private equity (PE)-acquired hospitals. Target hospitals maintain their survival rates while significantly reducing employment and wage expenditures. The number of core medical workers drops temporarily, but returns to its pre-acquisition level in the long run. However, administrative job and wage cuts persist over the long term, particularly at previously nonprofit hospitals. Using proprietary insurance claims data, we find no significant changes in patient demographics or inpatient prices at PE-acquired hospitals. While patient satisfaction declines, there is no evidence of increased patient mortality or readmission rates at PE-acquired hospitals.