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Private Equity Investments In Health Care: An Overview Of Hospital And Health System Leveraged Buyouts, 2003-17.

Publication ,  Journal Article
Offodile, AC; Cerullo, M; Bindal, M; Rauh-Hain, JA; Ho, V
Published in: Health affairs (Project Hope)
May 2021

Private equity firms have increased their participation in the US health care system, raising questions about incentive alignment and downstream effects on patients. However, there is a lack of systematic characterization of private equity acquisition of short-term acute care hospitals. We present an overview of the scope of private equity-backed hospital acquisitions over the course of 2003-17, comparing the financial and operational differences between those hospitals and hospitals that remained unacquired through 2017. A total of 42 private equity deals occurred, involving 282 unique hospitals across 36 states. In unadjusted analyses, hospitals that were acquired had larger bed sizes, more discharges, and more full-time-equivalent staff positions in 2003 relative to nonacquired hospitals; private equity-acquired hospitals also had higher charge-to-cost ratios and higher operating margins, and this gap widened during our study period. These findings motivate evaluations by policy makers and researchers on the impact, if any, of private equity acquisition on health care access, spending, and risk-adjusted outcomes.

Duke Scholars

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Published In

Health affairs (Project Hope)

DOI

EISSN

1544-5208

ISSN

0278-2715

Publication Date

May 2021

Volume

40

Issue

5

Start / End Page

719 / 726

Related Subject Headings

  • Investments
  • Humans
  • Hospitals, Private
  • Health Policy & Services
  • Health Facilities
  • Government Programs
  • Delivery of Health Care
  • 4407 Policy and administration
  • 4203 Health services and systems
  • 1402 Applied Economics
 

Citation

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Offodile, A. C., Cerullo, M., Bindal, M., Rauh-Hain, J. A., & Ho, V. (2021). Private Equity Investments In Health Care: An Overview Of Hospital And Health System Leveraged Buyouts, 2003-17. Health Affairs (Project Hope), 40(5), 719–726. https://doi.org/10.1377/hlthaff.2020.01535
Offodile, Anaeze C., Marcelo Cerullo, Mohini Bindal, Jose Alejandro Rauh-Hain, and Vivian Ho. “Private Equity Investments In Health Care: An Overview Of Hospital And Health System Leveraged Buyouts, 2003-17.Health Affairs (Project Hope) 40, no. 5 (May 2021): 719–26. https://doi.org/10.1377/hlthaff.2020.01535.
Offodile AC, Cerullo M, Bindal M, Rauh-Hain JA, Ho V. Private Equity Investments In Health Care: An Overview Of Hospital And Health System Leveraged Buyouts, 2003-17. Health affairs (Project Hope). 2021 May;40(5):719–26.
Offodile, Anaeze C., et al. “Private Equity Investments In Health Care: An Overview Of Hospital And Health System Leveraged Buyouts, 2003-17.Health Affairs (Project Hope), vol. 40, no. 5, May 2021, pp. 719–26. Epmc, doi:10.1377/hlthaff.2020.01535.
Offodile AC, Cerullo M, Bindal M, Rauh-Hain JA, Ho V. Private Equity Investments In Health Care: An Overview Of Hospital And Health System Leveraged Buyouts, 2003-17. Health affairs (Project Hope). 2021 May;40(5):719–726.

Published In

Health affairs (Project Hope)

DOI

EISSN

1544-5208

ISSN

0278-2715

Publication Date

May 2021

Volume

40

Issue

5

Start / End Page

719 / 726

Related Subject Headings

  • Investments
  • Humans
  • Hospitals, Private
  • Health Policy & Services
  • Health Facilities
  • Government Programs
  • Delivery of Health Care
  • 4407 Policy and administration
  • 4203 Health services and systems
  • 1402 Applied Economics