Hospice Acquisitions by Profit-Driven Private Equity Firms

Joan M Teno

doi:10.1001/jamahealthforum.2021.3745

Abstract

Hospice Acquisitions by Profit-Driven Private Equity Firms

Highlights

Profit is a key, driving focus of many businesses
Researchers demonstrated that introducing a predator species into to an ecosystem did cause harm, we do not know if the metaphor holds for the introduction of private equity into the ecosystem of hospice care—ie, how these acquisitions affect the care of dying patients and their families
There is no transparency; these transactions are often covered by nondisclosure agreements and ownership is not publicly disclosed as it is for nursing home ownership on the Centers for Medicare & Medicaid Services (CMS) website

Summary

Introduction

Profit is a key, driving focus of many businesses. private equity investment in health care could lead to improvement by injecting needed capital, a pressing concern is that many private equity firms often operate on the model of buying and quickly selling for a substantial profit within 3 years. Private equity firms see huge profits in buying hospice programs that are providing care for the most vulnerable persons and their families at a sentinel, often tragic time. This is exemplified by the recent acquisition of Kindred Healthcare, an umbrella organization that owns hospices that provide care for more than 50 000 Medicare beneficiaries annually.

Results

Conclusion