A recent study published in the Journal of the American Medical Association (JAMA) suggests that hospital-acquired adverse events are more prevalent in hospitals acquired by private equity. The study, conducted by Sneha Kannan, M.D., and her colleagues at Massachusetts General Hospital in Boston, examined changes in hospital-acquired adverse events and hospitalization outcomes associated with private equity acquisitions of U.S. hospitals.
To conduct the study, the researchers analyzed data from 100 percent Medicare Part A claims. They compared 662,095 hospitalizations at 51 hospitals that had been acquired by private equity with 4,160,720 hospitalizations at 259 matched control hospitals that had not been acquired by private equity.
The results of the study indicated that hospital-acquired adverse events or conditions occurred in 10,091 hospitalizations. Medicare beneficiaries admitted to private equity hospitals experienced a 25.4 percent increase in hospital-acquired conditions, resulting in 4.6 additional hospital-acquired conditions per 10,000 hospitalizations, compared to patients treated at control hospitals.
The increase in hospital-acquired conditions was primarily driven by a 27.3 percent increase in falls and a 37.7 percent increase in central line-associated bloodstream infections at private equity hospitals. Surprisingly, the incidence of central line-associated bloodstream infections increased even though there was a reduction in the placement of central lines by 16.2 percent.
The study also found a doubling in the rate of surgical site infections at private equity hospitals, from 10.8 to 21.6 per 10,000 hospitalizations, despite an 8.1 percent reduction in surgical volume. In contrast, the incidence of surgical site infections decreased at control hospitals.
While the study did reveal a slight decrease in mortality at private equity hospitals, the difference was not considered statistically significant. The authors found no differential change in mortality rates by 30 days after discharge.
These findings raise concerns about the potential impact of private equity on healthcare delivery. Private equity acquisitions of hospitals may prioritize financial goals over patient safety, leading to a higher incidence of adverse events.
Further research is needed to fully understand the underlying factors contributing to the increase in adverse events in hospitals acquired by private equity. Policy interventions may be necessary to ensure that patient safety is not compromised in these situations.
The implications of these findings are significant, as private equity investments in healthcare continue to rise. It is crucial for policymakers, healthcare providers, and patients to be aware of the potential risks associated with private equity takeovers and to prioritize patient safety in all healthcare settings.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it