Senators probe private equity hospital deals following CBS News investigation

Senators probe private equity hospital deals following CBS News investigation
CBS News
December 7, 2023
The top Democrat and Republican on a powerful Senate committee launched a wide-ranging investigation into private equity’s impact on the U.S. health care system on Wednesday. Democratic Sen. Sheldon Whitehouse of Rhode Island and Republican Sen. Charles Grassley of Iowa sent letters to a constellation of financial firms seeking information about how their dealings in the healthcare space impact patient care. ... “As private equity has moved into health care, we have become increasingly concerned about the associated negative outcomes for patients,” Whitehouse said in a statement to CBS News. “From facility closures to compromised care, it’s now a familiar story: private equity buys out a hospital, saddles it with debt, and then reduces operating costs by cutting services and staff—all while investors pocket millions. Before the dust settles, the private equity firm sells and leaves town, leaving communities to pick up the pieces.”