Close Menu
Gossips Today
  • Tech & Innovation
  • Healthcare
  • Personal Finance
  • Lifestyle
  • Travel
  • Business
  • Recipes
What's Hot

In a good sign for consumer internet startups, Creator Ventures raises $45M

Pennsylvania governor pushes private equity reform following Crozer Health closure

This Flight Attendant-approved Carry-on Set Can Fit Up to 1 Week's Worth of Clothes—and It’s on Sale for $43

Facebook X (Twitter) Instagram
Tuesday, May 20
Gossips Today
Facebook X (Twitter) Instagram
  • Tech & Innovation

    In a good sign for consumer internet startups, Creator Ventures raises $45M

    May 20, 2025

    Waymo and Uber are giving some riders early access to Atlanta robotaxi service

    May 20, 2025

    Deel wants Rippling to hand over any agreements involving paying the alleged spy

    May 19, 2025

    Grok says it’s ‘skeptical’ about Holocaust death toll, then blames ‘programming error’

    May 19, 2025

    Laser-powered fusion experiment more than doubles its power output

    May 18, 2025
  • Healthcare

    Pennsylvania governor pushes private equity reform following Crozer Health closure

    May 20, 2025

    Regeneron wins bid to buy 23andMe out of bankruptcy

    May 20, 2025

    Championing healthcare in Michigan | Healthcare Dive

    May 19, 2025

    CMMI revamps strategy to focus on disease prevention, cost savings

    May 19, 2025

    AdvaMed CEO Scott Whitaker pleads for tariff relief in Senate hearing

    May 18, 2025
  • Personal Finance

    4 Steps to Navigate Marriage and Debt

    May 11, 2025

    Buying a Fixer-Upper Home: What to Know

    May 10, 2025

    How to Talk to Your Spouse About Money

    May 10, 2025

    Millennials and Retirement – Ramsey

    May 9, 2025

    Retirement Education – Ramsey

    May 9, 2025
  • Lifestyle

    3 Fixes If You Hate the Way Your Pants Fit (That Have Nothing to Do with Your Waist Size)

    May 14, 2025

    On Sale Now: 9 Nike Sneakers Under $100 You’ll Want to Wear All Summer

    May 10, 2025

    Get the Look: Chateau Vibes, Courtyard Rates

    May 8, 2025

    Midlife Crisis, but Make It Casual

    May 6, 2025

    The Shoes You Buy Will Last Longer If You Just Understand This

    April 23, 2025
  • Travel

    This Flight Attendant-approved Carry-on Set Can Fit Up to 1 Week's Worth of Clothes—and It’s on Sale for $43

    May 20, 2025

    This City Was Just Named the No. 1 Summer Destination in the U.S. by Tripadvisor

    May 19, 2025

    I Traveled Internationally With 3 Kids Under 5—and Thrived Thanks to These Tips

    May 19, 2025

    Exclusive: Richard Branson on the Simple Item He Always Travels With—and How He Uses It to Make His Hotels, Planes, and Cruises Better

    May 18, 2025

    Prime Members Are Ahead of the Game With These 50 Exclusive Early Memorial Day Deals at Amazon—Up to 86% Off

    May 18, 2025
  • Business

    Gen Z is turning to ChatGPT for outfit advice

    May 20, 2025

    Teams that build winning products use these 5 strategies from the start

    May 19, 2025

    Four free Coursera courses to jump-start your AI journey

    May 19, 2025

    Housing market shift explained—and where it’s happening the fastest

    May 18, 2025

    Housing market shift: Foreclosures are creeping back up again

    May 18, 2025
  • Recipes

    eggs florentine

    May 20, 2025

    challah french toast

    May 6, 2025

    charred salt and vinegar cabbage

    April 25, 2025

    simplest brisket with braised onions

    April 2, 2025

    ziti chickpeas with sausage and kale

    February 26, 2025
Gossips Today
  • Tech & Innovation
  • Healthcare
  • Personal Finance
  • Lifestyle
  • Travel
  • Business
  • Recipes
Health & Wellness

Private equity firms got rich while shirking obligations to hospitals, Senate report finds

gossipstodayBy gossipstodayJanuary 10, 2025No Comments4 Mins Read
Share Facebook Twitter Pinterest Copy Link Telegram LinkedIn Tumblr Email
Private Equity Firms Got Rich While Shirking Obligations To Hospitals,
Share
Facebook Twitter LinkedIn Pinterest Email

Senators laid into private equity giants Apollo Global Management and Leonard Green & Partners in a report published Tuesday, alleging the firms downgraded care at hospitals they owned by prioritizing investors’ wealth over patient and provider well-being.

The report is the culmination of a year-long bipartisan investigation into the management of Lifepoint Healthcare, currently owned by Apollo, and Prospect Medical Holdings, which was previously owned by Leonard Green. The senators also sought information from the health systems’ landlord, real estate investment trust Medical Properties Trust, about certain sale leaseback transactions.

The Senate investigation, led by Sheldon Whitehouse, D-R.I., and Chuck Grassley, R-Iowa, comes amid growing scrutiny of private equity’s role in healthcare delivery — which has risen dramatically since the early 2000s. 

Private equity firms invest in companies with the goal to then sell them at a profit within about three to five years. There are approximately 457 private equity-owned hospitals nationwide, according to a tracker maintained by watchdog organization the Private Equity Shareholder Project, and over 20% of proprietary for-profit hospitals are owned by private equity firms.

Private equity has invested over $1 trillion into healthcare, with a record year in 2021 in which private equity funded 515 healthcare deals totaling $151 billion, according to the report.

However, research suggests that patients and providers can suffer from the deals. Private equity ownership is associated with worse care quality, increased falls, higher costs for patients and increased employee turnover.

The growing body of research condemning private equity’s involvement in healthcare delivery, as well as a series of alleged assaults at Apollo-backed Ottumwa Regional Health Center in Grassley’s home state, motivated the senators to launch their investigation into the healthcare operators in December 2023.

Tuesday’s report alleges a pattern of mismanagement that prioritized shareholder investments over patient and provider well-being.

“As our investigation revealed, these financial entities are putting their own profits over patients, leading to health and safety violations, chronic understaffing, and hospital closures,” Whitehouse said in a statement accompanying the report.

Whitehouse said documents he reviewed of board meetings between Leonard Green and Prospect showed management used their time to discuss “profit maximization tactics” while grazing over patient outcomes or quality of care.

During Leonard Green’s management of Prospect, the health system paid out $645 million in dividends and preferred stock redemption to its investors — $424 million of which went directly to pay Leonard Green investors.

Meanwhile, quality deteriorated at Prospect facilities, and the health system took on unsustainable debts and untenable lease agreements, according to the report.

By 2020, all but one of Prospect’s hospitals ranked in the bottom 17% of the CMS’ quality of care rankings — a metric commonly used to assess hospital performance — and state regulators had begun to investigate concerns of understaffing at Prospect-owned hospitals in Pennsylvania, Rhode Island and Connecticut, according to the report.

When Leonard Green sold its stake in 2021, Prospect owed Medical Properties Trust more than $100 million in annual rent payments and carried over $3 billion in liabilities. This fall, MPT took control of three Prospect facilities due to outstanding rent payments.

Presently, Prospect is seeking to divest “most of its assets,” according to the report.

A spokesperson for Leonard Green refuted the report’s analysis.

“At the time of exit, almost four years ago, Prospect was in strong financial condition with access to over $500 million to support its operations,” the spokesperson said, adding that the firm’s money had allowed Prospect to invest in struggling hospitals.

At Apollo-owned Lifepoint, the report alleges the private equity firm’s failure to adequately invest in care may have created patient safety concerns.

Under Apollo, the report said patient volumes at Lifepoint “shriveled,” emergency department wait times grew, transfers to other hospitals increased and the health system struggled to recruit and retain staff. 

“These underinvestment decisions by ORHC and its parent companies’ leaders created dangerous conditions for patients,” the report concluded.

In one scenario, operational back-ups in the Ottumwa Regional Health Center emergency department caused a patient to remain in the ED for five days, according to the report. During this time there were “multiple delays in examining and treating the patient’s urinary tract infection, evaluating the kidney function, fluid balance, controlling the patient’s high blood pressure, and rapid heart rate.”

The patient died within two days of being in the inpatient unit, according to the report.

A spokesperson for Apollo denied under-investing in Lifepoint and said it had spent “billions of dollars” to help “improve facilities, expand local healthcare services, recruit care providers, build new centers of care and upgrade technology across Lifepoint’s network.”

“At a time when many rural hospitals are under pressure and at risk of closing, Lifepoint has not had to close a single hospital and is committed to providing critical services in underserved areas,” the spokesperson added.

equity finds firms hospitals obligations private report rich Senate shirking
Follow on Google News Follow on Flipboard
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Copy Link
Previous ArticleCheap Recipes for Your Summer Cookout
Next Article TikTok pleads its case against sell-or-ban law before Supreme Court  
admin
gossipstoday
  • Website

Related Posts

Pennsylvania governor pushes private equity reform following Crozer Health closure

May 20, 2025

Regeneron wins bid to buy 23andMe out of bankruptcy

May 20, 2025

Championing healthcare in Michigan | Healthcare Dive

May 19, 2025
Leave A Reply Cancel Reply

Demo
Trending Now

How to Get and Stay Motivated When Starting a New Exercise and Diet Phase

Alignment Healthcare names new president as insurer eyes growth

What Is a Bear Market?

In a good sign for consumer internet startups, Creator Ventures raises $45M

Latest Posts

In a good sign for consumer internet startups, Creator Ventures raises $45M

May 20, 2025

Pennsylvania governor pushes private equity reform following Crozer Health closure

May 20, 2025

This Flight Attendant-approved Carry-on Set Can Fit Up to 1 Week's Worth of Clothes—and It’s on Sale for $43

May 20, 2025

Subscribe to News

Subscribe to our newsletter and stay updated with the latest news and exclusive offers.

Advertisement
Demo
Black And Beige Minimalist Elegant Cosmetics Logo (4) (1)
Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

Categories

  • Tech & Innovation
  • Health & Wellness
  • Personal Finance
  • Lifestyle & Productivity

Company

  • About Us
  • Contact Us
  • Advertise With Us

Services

  • Privacy Policy
  • Terms & Conditions
  • Disclaimer

Subscribe to Updates

© 2025 Gossips Today. All Right Reserved.

Type above and press Enter to search. Press Esc to cancel.