Private Equity’s Deadly Impact on Healthcare: HHS ReportReveals Alarming Findings

A recent Department of Health and Human Services (HHS) report has exposed disturbing trends in
healthcare facilities owned by private equity firms. As personal injury attorneys representing nursing
home residents and their families, we find these findings particularly concerning.

Key Findings:

  • Private equity investment in nursing homes led to an 11% increase in patient deaths
  • Healthcare quality and access declined while patient costs increased
  • Aggressive staffing cuts and hiring of inadequately credentialed staff were common practices
  • Private equity firms often create local monopolies through “roll-ups” of competing facilities

Concerning Practices Revealed:

  • Replacement of qualified medical professionals with less credentialed staff
  • Deliberate understaffing of facilities
  • Misleading patients by having unlicensed staff wear the same uniforms as licensed professionals
  • Retaliation against healthcare workers who raise safety concerns

Impact on Patient Care:
Healthcare workers reported dangerous patient loads, with one physician noting she “was forced to
see 45 patients daily with 1 medical assistant.” Patient complaints often went unanswered, creating
serious safety risks.

What This Means for Patients and Families:

When choosing a nursing home facility, it’s crucial to research ownership structure and staffing
practices. Unfortunately, private equity firms often maintain facility names after acquisition, making
it difficult for consumers to identify ownership changes.

Legal Implications:
These findings underscore the importance of holding nursing homes accountable for substandard
care. If you have a loved one in a nursing home facility, monitoring their care quality and being aware
of ownership changes is essential for their safety and well-being.

Note: This article is based on a February 2025 HHS report and is intended for informational
purposes only. If you have concerns about nursing home care, please contact qualified legal counsel.

Citations:
[1] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/19988851/d657bb0a-5a16-41a1-
940a-acf0611c5255/US-health-department-condemns-private-equity-firms-for-role-in-declining-
healthcare-access--US-healthcare--The-Guardian.pdf