Hospital death rates rise after PE acquisition: Study

Hospitals acquired by private equity firms experience a higher patient death rate in emergency departments than other hospitals, according to research published in Annals of Internal Medicine. 

The study, conducted by researchers at the University of Pittsburgh, University of Chicago and Harvard Medical School in Boston, examined hospital staffing and patient outcomes after private equity acquisition. Patient outcomes were measured across length of stay in the ICU, ED and ICU mortality, and transfers to other acute care hospitals. 

Among 293 hospitals acquired by private equity firms between 2010 and 2017, ED mortality increased by 13.4%, while the rate decreased at hospitals not acquired by private equity, according to the study. 

The study, which used Medicare Parts A and C claims and cost data, found that private equity hospitals experienced seven additional deaths per 10,000 ED visits — for the baseline of 52 deaths per 10,000 visits. 

Additionally, the ED transfer rate increased 4.2% from the baseline at private equity hospitals. For ICUs, the transfer rate increased 10.2%, while length of stay declined 4.7%. 

Compared to similar facilities, private equity hospitals reduced full-time employees by an average of 11.6% and salary expenditures by 16.6%. 

The National Institutes of Health and HHS’ Agency for Healthcare Research and Quality funded the research.

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