Breakthrough rural health report receives coverage in numerous publications

In a January 2023 report, “Private Equity Descends on Rural Healthcare,” Private Equity Stakeholder Project released previously unreported data on private equity ownership of rural hospitals.

Multiple news publications covered the report and its new findings that at least 130 rural hospitals that are currently owned by private equity firms.

Fierce Healthcare:

“Private equity owns at least 130 rural hospitals, and other revelations in a sweeping new report on PE in rural healthcare”

Steady private equity (PE) activity in rural healthcare warrants heavier scrutiny and regulatory reform, argues a new report from the Private Equity Stakeholder Project.

PESP, a nonprofit that advocates for more disclosure about private equity deals, examined rural hospital ownership, buyouts of non-hospital rural healthcare companies and policies that incentivize these trends. Additionally, the report proposes policy recommendations to ensure providers are protected from profiteering.

The problems of rural healthcare—poorer access to care and worse outcomes—make it “clear that there is a critical need for investment in rural healthcare,” the report said. “Private equity appears to see opportunity to profit.” 

Podnosis:

“‘Podnosis’: What private equity means for rural healthcare, and how Margaret-Mary Wilson’s career journey impacts patient care”

Rural healthcare is in dire need of investment and resources. Enter private equity. But experts say PE deals need to be scrutinized. Mary Bugbee, a research and campaign coordinator at a nonprofit financial watchdog organization called Private Equity Stakeholder Project, talks with Anastassia Gliadkovskaya about the pros and cons of PE in rural settings.  

HealthLeaders:

“Is Private Equity Ownership Helping Or Hurting Rural Hospitals?”

“Healthcare systems in America’s rural communities are experiencing an escalating crisis,” Eileen O’Grady, PESP Healthcare Director, said in the report. “Rural hospitals are closing at a dangerous rate. Chronic staffing shortages plague providers and the health of people living in rural areas is, by most measures, significantly worse than in non-rural areas. Despite these challenges, private equity appears to still find opportunities to profit off this struggling industry, thereby adding to the strife.”

Axios:

“Plotting a comeback for physician-owned hospitals”

Sponsors aren’t necessarily flocking to own hospitals, given the trend of shifting care to alternate sites — but PE has found a niche in historically under-funded rural hospitals. PE firms own at least 130 rural hospitals, according to a report from the Private Equity Stakeholder Project.

Electronic Health Reporter

Private Equity Coming To Rural Healthcare

A new report by the Private Equity Stakeholder Project (PESP), “Private Equity Descends on Rural Healthcare,” provides an unprecedented look at the private equity industry’s incursion into rural healthcare. The findings were led by PESP healthcare researchers Eileen O’Grady, Michael Fenne, and Mary Bugbee.

“Healthcare systems in America’s rural communities are experiencing an escalating crisis,” said O’Grady, PESP Healthcare Director. “Rural hospitals are closing at a dangerous rate. Chronic staffing shortages plague providers, and the health of people living in rural areas is, by most measures, significantly worse than in non-rural areas. Despite these challenges, private equity appears to still find opportunities to profit off this struggling industry, thereby adding to the strife.”

TechTarget:

“Private Equity Ownership of Rural Hospitals is Growing, Report Finds”

Private equity firms own at least 130 rural hospitals, raising concerns about care quality, staffing levels, and financial pressures at these facilities, according to a report from the Private Equity Stakeholder Project (PESP).

Nearly 30 percent of all rural hospitals in the country are at risk of closing, exacerbating care disparities for rural residents who already face barriers to healthcare access. Like most healthcare facilities, rural hospitals are facing significant staffing shortages.

While there is a critical need for investment in rural healthcare, private equity investment may create more problems for rural facilities.

“Healthcare systems in America’s rural communities are experiencing an escalating crisis,” Eileen O’Grady, healthcare director of PESP, said in a press release. “Rural hospitals are closing at a dangerous rate. Chronic staffing shortages plague providers, and the health of people living in rural areas is, by most measures, significantly worse than in non-rural areas. Despite these challenges, private equity appears to still find opportunities to profit off this struggling industry, thereby adding to the strife.”

The “Private Equity Descends on Rural Healthcare” report examines the extent to which private equity has invested in rural health, the financial drivers of these investments, and the potential risks posed by private equity’s involvement.