Democrats on the Congressional Joint Economic Committee released a report this week that examines the influence of private equity firms in the health care system.
Generally, the report ties private equity’s growing influence in the health care industry with the declining quality of care at private equity-owned hospitals and nursing homes. It found that private equity firms have been associated with potential overprescription of procedures, shortages in medical devices, and poorer quality of care outcomes.
It concludes that these predatory private equity firms hurt workers, threaten the health care system, and harm the broader economy.
“New Mexico is at the highest risk of being exploited by private equity firms. While private equity can be an important tool for struggling businesses, harmful practices by unregulated private equity firms can shut workers out of good-paying jobs and threaten Americans’ health. That needs to end,” Sen. Martin Heinrich (D-NM), chair of the JEC, said. “I will keep working to make sure patients aren’t harmed by predatory practices of private equity firms.”
Congressional Democrats have taken several steps to address this concern, launching an investigation into private equity-owned hospitals, seeking answers on whether companies’ efforts to pad their profits simultaneously harmed patients, and working to close tax loopholes that specifically benefit these firms.