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Private Equity Firms Driving Up Medical Bills in Healthcare

Private Equity Firms Driving Up Medical Bills in Healthcare
Eylul Sare Comez
  • 2 February 01:00, 2025
Former Trade Commission Chair Lena Khan warns about private equity firms' rising impact on healthcare costs. She highlights the concerning trends in higher medical bills and reduced care quality.
The Dangers of Private Equity Rollups

The Dangers of Private Equity Rollups

Private equity rollups are a growing concern in the healthcare sector, where firms acquire multiple businesses within a similar field to maximize profits. This approach often leads to significant layoffs and compromises the quality of care. Lena Khan has voiced the need for regulatory scrutiny to protect against the negative ramifications of these mergers.

Impact on Medical Costs and Quality of Care

Impact on Medical Costs and Quality of Care

A recent investigation found that the rise of private equity firms correlates with increased healthcare costs for patients, particularly impacting how much they pay for office visits. Hospital-affiliated doctors and those under private equity umbrella charge substantially more, raising serious concerns about care standards. The results indicate that patient experiences could worsen as profit-driven motives supersede patient-focused care.

Call for Stronger Regulation

Call for Stronger Regulation

Khan's warnings call for a proactive stance by regulators to prevent further erosion of healthcare standards due to private equity influence. The importance of ensuring competitive practices in the healthcare market cannot be overstated. Policymakers are urged to maintain oversight to protect patients' interests against overbearing corporate powers.

In a recent discussion, former Trade Commission Chair Lena Khan raised alarm bells regarding the growing influence of private equity firms on the healthcare industry. According to Khan, private equity's aggressive tactics are contributing to the skyrocketing costs of medical care and are compromising the quality of service provided to patients. She pointed out that the consolidation of healthcare entities under private equity firms is leading to less competition and ultimately higher prices. As healthcare workers express growing concerns, evidence demonstrates that private equity firms are effectively raising patient costs, which is a worrying trend for American healthcare. Khan discussed the detrimental effects of private equity rollups, where firms acquire and merge healthcare businesses to maximize profits, often leading to layoffs to enhance 'efficiency.' This practice has raised significant concerns among healthcare professionals, particularly emergency room doctors, who report a decline in care quality and an increase in costs. Khan emphasized the urgent need for vigilance, stating that ignoring this trend could have "catastrophic consequences for Americans." A noteworthy example is the Federal Trade Commission's recent settlement with Welsh Carson Anderson and Stow, which forced restrictions on their buyouts that were found to inflate prices and stifle competition. Furthermore, a pivotal study published in the JAMA Health Forum reveals alarming statistics regarding the ties between physicians and large hospital systems, particularly as private equity firms are increasingly affiliated with healthcare facilities. The study indicates that nearly 80% of doctors are now employed by either hospital systems or corporations, leading to elevated prices for patient visits. Specifically, hospital-affiliated doctors charge 11% more, while private equity-affiliated doctors are priced approximately 8% higher. This trend highlights the troubling reality that Americans are paying significantly more for healthcare that is often of inferior quality. Khan's commentary underscores the crucial role policy-makers must play in regulating private equity's influence within the healthcare sector, ensuring that market integrity is upheld and profit motives do not overshadow patient care. As the landscape continues to evolve, it is imperative that the discourse surrounding healthcare costs remains on the forefront of public policy discussions.
  • Private Equity
  • Healthcare Costs
  • Lena Khan
  • Medical Bills
  • Healthcare Quality

Comments

@JebusHypocristosX

Luigi showed the world. FREE Luigi!!!

@Y0Daddy

She should be grateful she was born in America, in her country pakistan she would have been married off by the age of 13 to one of her 30 year old cousin in exchange of few goats.

@javiernajar1457

Greedy capitalists will destroy the country.

@shellylogan5594

This is old news. It’s been happening for decades and WILL destroy what’s left of the healthcare (wealthcare) system

@Darius-e7n

Trump and the GOP doesnt give a damn about immigration, fentanyl deaths, the destruction of democracies or our allies. Hes a complete disaster. Heres *proof* how vile the right and Trump is https://www.youtube.com/watch?v=bkDZNjWovXw https://youtu.be/PHE_mKdwxhs?si=jxNQdnW6j19iezqo&t=621

@bigdick602

Free Luigi!

@RandomPeasant123

free market = Monopoly Hello?

@eldenringer6466

This lady did more for Americans than trump ever did. Thank you Khan.

@chamuelolivier1594

Youre responsible of this. You made anything to help for Harris election. You bashed her over and over again. You wanted him, you have him.

@kojo6300

Trump fired Lina and Cenk finds a way to tie Kamala into this. Wasn’t she working under Biden?

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