I’ve recently noticed something troubling: private equity is increasingly taking over medical businesses. It started with my orthodontist, then my dentist. Curious, I decided to dig deeper. What I discovered was shocking. Private equity is causing serious damage to local hospitals and increasingly, specialties. At first, I didn’t think this would affect me — but it did. And the truth is, it could be affecting you too.
What is Private Equity? (Fair question)
Private equity is when investors buy companies, often using borrowed money, to try to make them more valuable and then sell them for a profit. Because their main goal is to give money back to the people who invested in them, they focus on changes that increase profits fast—like cutting costs or selling parts of the company.
This can sometimes help a business grow, but it can also mean less focus on long-term quality or customer needs. And recently, private equity has been entering into the healthcare industry with over a trillion dollars invested by it in the last decade.
Over the past few years, these firms have quietly taken over hundreds of hospitals and clinics in the U.S.—even some school health programs. And the results? Less staff. More mistakes. Higher bills. And worse care—especially for teens.
So what happens when private equity owns a hospital?
1. More mistakes, less safety.
One study looked at 51 hospitals. The ones bought by private equity had a 25% jump in medical mistakes. That included more infections, more falls, and worse care for patients who needed surgery or emergency help. Even though the patients were sometimes healthier to begin with, they ended up worse off.
2. Patient satisfaction drops.
People noticed. One study from the Journals of the American Medical Association showed that patient satisfaction dropped the longer a hospital is held by private equity, reaching as low as 5% by year 3. Many said they wouldn’t recommend the hospital to friends or family as staff became slower to respond to patients’ needs, especially in emergencies.
3. Bills go way up.
Private equity firms want to make money. So they raise prices. Sometimes they even charge for out-of-network services—even if the patient is at a hospital that’s supposed to be covered by their insurance. These “surprise bills” can cost hundreds or thousands of dollars and are especially tough on families who don’t expect them.
What Big Changes Need to Happen
Ban secret hospital buyouts
Private equity often buys hospitals quietly, then cuts staff and services to boost profits. Deals should be public and transparent so communities know who’s in charge.
Cap debt dumping
Many PE-owned hospitals get loaded with massive debt, then collapse. Laws should limit how much debt owners can pile on before walking away.
Protect essential services
ERs, maternity wards, and ICUs can’t just vanish because they’re “unprofitable.” Require PE owners to keep core services running—or sell to someone who will.
Tie profits to patient outcomes
If a hospital’s quality tanks, owners shouldn’t still cash out. Link executive pay and investor returns to actual patient care, not just revenue.
What Can I Do?
Find out how private equity affects healthcare where you live.
Choose independent or community-based providers when you can.
Speak up—email your representatives, join local health advocacy groups.
Your voice matters. Your health depends on it.
Final Thoughts
Healthcare isn’t supposed to be about profits. It’s about people. There are real people’s lives on the line every day, and real families worrying about them. When private equity firms take over, they put money first and patients second. That might work in a business. But it doesn’t work in a hospital or clinic.
And for teens—who are already facing mental health struggles, stress, and questions about their bodies—it can make things even harder.
Everyone deserves care that’s safe, affordable, and focused on well-being. Not stock returns.
