The Senate Budget Committee, led by Chairman Sheldon Whitehouse and Ranking Member Chuck Grassley, has launched a bipartisan investigation into the effects of private equity ownership on hospitals in the United States. The committee is particularly concerned about the questionable financial transactions and potential impact on patient care in hospitals under private equity ownership.
In letters sent to the CEOs of Leonard Green & Partners, Prospect Medical Holdings, Medical Properties Trust, Apollo Global Management, Lifepoint Health, and Ottumwa Regional Health Center, Senators Whitehouse and Grassley are demanding answers regarding the negative outcomes associated with private equity ownership. They have expressed concerns over staffing reductions, substandard healthcare, and the stripping of valuable assets, such as real estate, which leaves hospitals burdened with debt.
Chairman Whitehouse highlighted the familiar pattern seen with private equity ownership in healthcare, stating, "private equity buys out a hospital, saddles it with debt, and then reduces operating costs by cutting services and staff—all while investors pocket millions." He emphasized the need to address the harmful effects of these transactions and ensure that communities are not left to pick up the pieces after the private equity firm sells and leaves town.
Ranking Member Grassley echoed these concerns and emphasized that a business model prioritizing profits over patient care and safety is unacceptable. He referred to the shocking events at Ottumwa Regional Health Center, which prompted him to ask tough questions about the negative impact of financial maneuvers by private equity and related companies on the resources and patient care at rural hospitals. He stressed that Iowa residents should not have to settle for anything less than the highest quality of care.
This investigation builds upon a previous one launched by Ranking Member Grassley in March 2023, which sought information on the extent to which private equity ownership contributed to mismanaged care at an Iowa hospital. The companies involved failed to provide satisfactory responses, leading to the need for additional oversight.
Recognizing the growing concern about the expansion of private equity in healthcare, Senators Whitehouse and Grassley have expanded their investigation to include companies that currently own or operate, or formerly owned or operated hospitals in California, Pennsylvania, Rhode Island, and other states.
The Senate Budget Committee's bipartisan investigation aims to shed light on the impact of private equity ownership in America's hospitals and ensure that high-quality healthcare is provided to the communities and patients they serve.
Contact information for the Senate Budget Committee can be found below:
Senate Budget Committee - Main Office
624 Dirksen Senate Office Building
Washington, DC 20510
Phone: (202) 224-0642
Fax: (202) 224-4835
For additional details, please follow this link: https://www.budget.senate.gov/chairman/newsroom/press/senate-budget-committee-digs-into-impact-of-private-equity-ownership-in-americas-hospitals
