Hospitals acquired by private equity firms have seen a rise in patient falls and infections, according to a new study.
The study, published Tuesday in the Journal of American Medicine, used data from 100 percent Medicare Part A claims and found that three years after hospitals acquired private equity capital, an increase in “hospital-acquired Falls and midline-associated bloodstream infections increased by 25.4 percent.”
“Medicare beneficiaries at private equity hospitals were slightly younger, were less likely to have dual Medicare and Medicaid eligibility, and were more likely to transfer to other acute care hospitals compared to the control group, likely reflecting a lower risk population of admitted beneficiaries,” it said in the study.
“This may explain a small relative decrease in in-hospital mortality 30 days after hospital discharge.”
Two weeks ago, the House of Representatives passed the Lower Costs, More Transparency Leadership Act after facing opposition from Democrats like Rep. Richard Neal (D-Mass.) in September for not including provisions on private equity ownership at health facilities.
The bill also aims to ban spread pricing by pharmacy benefit managers while introducing site-neutral payment reforms in Medicare.
Rep. Frank Pallone Jr. (D-N.J.) described the legislation as “a victory for anyone who has ever struggled to understand the cost of a health treatment or prescription drug at the pharmacy counter.”
“These measures will provide consumers and employers with data about hospital prices and insurers’ rates so they can compare prices and save money,” Pallone added.
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