{"id":87591,"date":"2024-03-18T15:04:53","date_gmt":"2024-03-18T19:04:53","guid":{"rendered":"https:\/\/medcitynews.com\/?p=667731"},"modified":"2024-04-01T16:08:03","modified_gmt":"2024-04-01T20:08:03","slug":"healthcare-docket-feds-and-states-move-to-curb-private-equitys-takeover-of-healthcare","status":"publish","type":"post","link":"https:\/\/medcitynews.com\/2024\/03\/healthcare-docket-feds-and-states-move-to-curb-private-equitys-takeover-of-healthcare\/","title":{"rendered":"Healthcare Docket: Feds and States Move to Curb Private Equity\u2019s Takeover of Healthcare"},"content":{"rendered":"

\"provider<\/p>\n

Good old American capitalism is getting a hard look under the healthcare regulatory microscope. And not a moment too soon, in the eyes of some.<\/span><\/p>\n

For your next doctor\u2019s appointment, odds are nearly <\/span>3-1 that the physician who sees you is a corporate employee<\/span><\/a>. And regulators and legislators far and wide are saying that this ratio may be harmful to your health.<\/span><\/p>\n

Corporate control of U.S. healthcare has reached such proportions that three federal agencies announced on March 5 a <\/span>cross-government investigation<\/span><\/a> into the mushrooming role of corporate and private-equity (PE) investment in the industry.<\/span><\/p>\n

States are also getting in on the oversight action. To date, <\/span>nearly a dozen<\/span><\/a> state legislatures have passed laws or are in the process of enacting regulation heightening oversight of corporate acquisitions and mergers in healthcare.<\/span><\/p>\n

\u201cPrivate equity firms and other corporate owners are increasingly involved in healthcare system transactions, and, at times, those transactions may lead to a maximizing of profits at the expense of quality care,\u201d said a <\/span>Federal Trade Commission press release announcing the inquiry<\/span><\/a>.<\/span><\/p>\n

For more than a few healthcare providers, that is an understatement. In a <\/span>physician survey<\/span><\/a> published in JAMA Internal Medicine on March 11, three out of five respondents (60.8%) said they view private equity involvement negatively, while only 10.5% saw it as positive or somewhat positive.<\/span><\/p>\n

Doctors around the country are stridently blaming corporate takeover of healthcare for escalating <\/span>physician and nurse burnout<\/span><\/a> since the Covid-19 pandemic and for deteriorating patient care due to increased pressure on clinicians to see more patients in the same or less time.<\/span><\/p>\n

For example, Jonathan Jones, MD, president of the American Academy of Emergency Medicine, said he left his job in a community hospital when a private equity-controlled group took over his department and <\/span>doubled the patient-to-physician ratio<\/span><\/a>.<\/span><\/p>\n

A <\/span>JAMA study<\/span><\/a> published December 26, 2023, found that patients receiving care at PE-owned hospitals experienced a higher rate of hospital-acquired adverse events \u2013 such as bloodstream infections, falls, and medication errors \u2013 than patients at non-PE-owned hospitals. The difference was as much as 25% for Medicare patients.<\/span><\/p>\n

Another study<\/span><\/a> published in the BMJ uncovered a link between private-equity investment and cost increases for payers and patients as high as 32%. Yet another study found PE-owned nursing homes were associated with <\/span>20,000 additional deaths<\/span><\/a> over a 12-year period.<\/span><\/p>\n

The disparities are <\/span>driving Indiana legislators<\/span><\/a> to join those in nine other states in requiring healthcare entities and PE firms to <\/span>give advance notice<\/span><\/a> to state officials prior to any acquisition or merger.<\/span><\/p>\n

If the legislation passes, the Hoosier State will become the first red state to join its all-blue predecessors in enacting similar mandates: New York, Oregon, <\/span>California<\/span><\/a>, Massachusetts, Minnesota, Nevada, Connecticut, Illinois, and Washington.<\/span><\/p>\n

Of course, the question arises as to whether the toothpaste can be returned to the tube. For a variety of economic reasons, independent medical practices may be headed toward total extinction. Principally, commercial insurers\u2019 muscle in negotiating provider reimbursements put the declining number of independents at a sizable disadvantage.<\/span><\/p>\n

But will American healthcare go the way of the banking sector\u2019s consolidation into a handful of all-powerful titans? Possibly so. One study found that PE acquisitions of physician practices increased sixfold in a decade. Another reported that in one of eight metropolitan areas nationwide, a single PE firm owns more than half of market share for certain specialties.<\/span><\/p>\n

Alas, the corporately employed doctor will see you now. But only for a few minutes.<\/span><\/p>\n

Editor\u2019s Note: This article first appeared in the Healthcare Docket newsletter. <\/span><\/i>Click here to subscribe and read the full newsletter.\u00a0<\/span><\/i><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Will American healthcare go the way of the banking sector\u2019s consolidation into a handful of all-powerful titans?<\/p>\n","protected":false},"author":33588,"featured_media":34065,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"featured_image_focal_point":[],"homepage_placement":"top","homepage_placements":{"top":true,"featured":true,"sidebar":false},"homepage_alternative_layout":false,"featured_categories":[51659],"hide_from_feed":false,"footnotes":""},"categories":[63,21,51659,24],"tags":[40577,44298],"class_list":["post-87591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily","category-news","category-providers","category-top-story","tag-burnout","tag-healthcare-private-equity"],"acf":[],"yoast_head":"\nHealthcare Docket: Feds and States Move to Curb Private Equity\u2019s Takeover of Healthcare - MedCity News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/medcitynews.com\/2024\/03\/healthcare-docket-feds-and-states-move-to-curb-private-equitys-takeover-of-healthcare\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Healthcare Docket: Feds and States Move to Curb Private Equity\u2019s Takeover of Healthcare - 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