When most people have to check into a hospital or have an outpatient procedure done, they don’t give much thought to who actually owns it. That’s especially true if it’s a local hospital that they’re familiar with. Many hospitals are part of a vast regional or even nationwide network. Some are university affiliated or owned by a religious-based organization.
Increasingly, when hospitals are on the brink of closure because they can’t afford to stay open, private equity firms purchase them. While that can save a neighborhood hospital, it can also change the priorities of hospital administrators and even the medical professionals who work there.
If a private equity firm, which may have little experience or knowledge in the health care sector, is focused on turning the hospital’s financial fortunes around, what does that mean for patient safety? A study by the Journal of the American Medical Association (JAMA) looked at what happened when a hospital was purchased by a private equity firm.
Some results of the study
Specifically, researchers looked at changes in the rate of “preventable adverse events” in these hospitals following the change in ownership among patients on Medicare compared with other hospitals. Preventable adverse events include things like central line infections (which showed a 38% increase), falls (with a 27% increase) and bedsores (a 25% increase). One researcher noted, “Reductions in staffing after acquisition could explain all of these findings.”
It should be noted that researchers found no notable rise in fatality rates after a private equity firm took over a hospital. These tend to be tied to patients’ individual medical conditions rather than the level of care they receive.
It’s smart to learn more about a hospital or other medical facility, if you’re able to before you or a loved one needs to go there. Of course, there often isn’t time for that. Further, people often go where their doctor is authorized to work or someplace that’s in their health insurance network. It’s also not always easy to determine the true ownership of a hospital.
It’s critical not to underestimate the harm that can be done by preventable adverse events. As the name makes clear, they are preventable. That’s why it’s worthwhile to determine whether you have grounds for a medical malpractice action if you or a loved one has been harmed in a hospital.