A bipartisan Congressional investigation found that private equity-backed U.S. hospital systems deteriorated in patient care as their owners profited. The inquiry focused on Apollo Global Management's Lifepoint Healthcare and Leonard Green & Partners' Prospect Medical Holdings. The investigation revealed patient safety violations, understaffing, and rising costs linked to private equity's debt-laden deals. Academic studies indicate that private equity firms' involvement in healthcare leads to higher costs for patients and payers, such as Medicare, while contributing to lower care quality. A 2023 study found that patients at private equity-owned hospitals experienced more infections and falls.
