PESP and NDRN’s report on private equity’s impacts on wheelchair users cited in Senators’ letter
October 24, 2024
On October 22, 2024, Senators Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT) sent a letter to the Department of Health and Human Services (HHS), urging the agency to place greater oversight on private equity in healthcare, and particularly its impacts on wheelchair users and other vulnerable populations.[1]
The press release announcing the letter states, “Currently, the wheelchair supply market is largely controlled by two PE-owned companies — National Seating and Mobility (NSM) and Numotion — which fail to provide adequate support for timely repairs. For the nation’s roughly 5.5 million wheelchair users, repairs that take weeks are the norm, leading many to be trapped at home and at risk of other detrimental effects.”[2]
The letter cites a November 2023 report co-released in November 2023 by Private Equity Stakeholder Project (PESP) and National Disability Rights Network (NDRN), titled, “Private Equity in Durable Medical Equipment: How Private Equity Profits Off of Disabled and Chronically Ill Americans.”
Citing the PESP and NDRN report, Warren and Blumenthal write, “PE companies are structurally motivated to focus time and money on selling wheelchairs at the expense of investing more resources in repairs and customer service.”[3]
The letter closes with a number of questions to HHS regarding the steps it plans to take to “help combat the misalignment of PE’s short-term profit incentives with the well-being of our nation’s most vulnerable populations.”[4]
PESP commends the senators’ effort to bring greater oversight to private equity in healthcare.
- Senator Warren and Blumenthal’s letter can be accessed here.
- PESP and NDRN’s report on private equity and durable medical equipment can be accessed here.
Resources
[1] “Warren, Blumenthal Urge HHS To Take Action To Protect Wheelchair Users From Private Equity Abuses | U.S. Senator Elizabeth Warren of Massachusetts.” Accessed October 23, 2024. https://www.warren.senate.gov/newsroom/press-releases/warren-blumenthal-urge-hhs-to-take-action-to-protect-wheelchair-users-from-private-equity-abuses.
[2] “Warren, Blumenthal Urge HHS To Take Action To Protect Wheelchair Users From Private Equity Abuses | U.S. Senator Elizabeth Warren of Massachusetts.” Accessed October 23, 2024. https://www.warren.senate.gov/newsroom/press-releases/warren-blumenthal-urge-hhs-to-take-action-to-protect-wheelchair-users-from-private-equity-abuses.
[3] Pg. 3 of “Warren and Blumenthal Letter to HHS,” October 22, 2024. https://www.warren.senate.gov/imo/media/doc/letter_to_hhs_re_pe_firms_in_health_care.pdf.
[4] Pg. 4 of “Warren and Blumenthal Letter to HHS,” October 22, 2024. https://www.warren.senate.gov/imo/media/doc/letter_to_hhs_re_pe_firms_in_health_care.pdf.
