The acquisition of U.S. hospitals by private equity firms has been associated with a decline in global measures of patient-reported care experience, according to a study published on Jan. 9 in the Journal of the American Medical Association.

Researchers, led by Anjali Bhatla, M.D., from Beth Israel Deaconess Medical Center in Boston, analyzed data from 73 U.S. hospitals acquired by private equity firms between 2008 and 2019 and compared them to 293 matched control hospitals. Patient experience metrics were evaluated three years before and three years after acquisition.

The study revealed that patient satisfaction ratings at private equity-acquired hospitals worsened over time. The percentage of patients rating their hospital experience as a 9 or 10 declined slightly (from 65.0% to 65.2%) at private equity-acquired hospitals, whereas control hospitals showed an increase (66.2% to 69.2%). The difference-in-differences estimate for this metric was −2.4 percentage points.

Similarly, the percentage of patients who would “definitely recommend” the hospital decreased at private equity-acquired hospitals (from 66.9% to 65.5%) but improved at control hospitals (68.2% to 69.3%), resulting in a difference-in-differences estimate of −2.1 percentage points. These discrepancies grew more pronounced over time, with the largest gaps observed in the third year post-acquisition (−5.2 percentage points for satisfaction ratings and −4.4 percentage points for recommendations).

"Improving patient-centered care is a major policy priority, and these findings raise concerns about the implications of private equity acquisitions on patient care experience at U.S. hospitals," the authors stated.

The findings highlight the need for policymakers to carefully consider the impact of financial models on healthcare delivery, especially as private equity involvement in the U.S. healthcare system continues to grow. While one author disclosed ties to Abbott Vascular and Chambercardio, the study underscores the broader implications of private equity ownership on patient satisfaction and care quality.