Study: PE-owned hospices have highest profits, lowest spending on direct patient care

Study: PE-owned hospices have highest profits, lowest spending on direct patient care 
McKnights Home Care; by Liza Berger; 10/8/25 
Compared to publicly traded company-owned and other for-profit hospices, private equity (PE)-owned hospices reported the highest profits and lowest spending on direct patient care and nonsalary administrative services, a study published Tuesday in Health Affairs revealed. The study, which used 2022 Medicare cost reports, compared revenue and expense data across four hospice ownership models: PE-owned, publicly traded company-owned, other for- profit, and not-for-profit. The sample consisted of 2,989 freestanding hospices ... [Across] the board, not-for-profits spend about 20% more on direct patient care services than other for-profits. And that seems to be driven by a pretty big difference in nurse salaries, which to us implies that staffing tends to be better at or at least more robust at not-for-profits. ... A body of research has found that for-profit hospice ownership, including private equity, is associated with poorer quality, higher rates of complaints, a higher number of live discharges, and a higher hospitalization rate compared with not-for-profit ownership.