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Death rates rose in hospital ERs after private equity firms took over

The increased deaths in emergency departments at private equity-owned hospitals are most likely the result of reduced staffing levels, researchers say.

The increased deaths in emergency departments at private equity-owned hospitals are most likely the result of reduced staffing levels after the acquisitions, which the study also measured, said Dr. Zirui Song, a co-author and associate professor of health care policy and medicine at Harvard Medical School. “When human labor is cut to this extent in staffing sensitive areas of the hospital, patient harm can plausibly ensue, including mortality.” Private equity firms are sophisticated financial operators that buy companies, typically loading them with large amounts of debt to pay for the acquisitions.

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