Hospitals & Healthcare Systems
Hospital chains, physician staffing, and healthcare systems
What PE Ownership Means for This Industry
25% more complications
PE-owned hospitals have higher patient mortality and complications
Research published in JAMA found PE ownership of hospitals was associated with a 25% increase in hospital-acquired conditions and increased patient mortality, driven by cost-cutting and understaffing.
Source: JAMA, 2023
$800M+ extracted from Steward alone
PE hospital chains extract value through sale-leasebacks while facilities deteriorate
PE firms like Cerberus sell hospital real estate and lease it back at inflated rates, extracting billions while hospitals lose control of their own buildings. Steward Health Care's collapse after Cerberus's $800M extraction is the most prominent example.
Source: Boston Globe, PE Stakeholder Project, 2024
PE-Owned Brands
Agilon Health
Owned by General Atlantic
General Atlantic-backed Agilon Health partners with primary care physicians under a total cost of care model for Medicare Advantage patients. IPO'd in 2021 (NYSE: AGL). Operates in value-based care — a model praised by some and criticized by others for creating misaligned incentives around care access.
0 locations tracked
Envision Healthcare
Owned by KKR (Kohlberg Kravis Roberts)
KKR acquired Envision in 2018 for $9.4B including $7B in debt. Became poster child for PE surprise billing in healthcare. Filed Chapter 11 in 2023 with $7.7B in debt. ~69,000 physicians and staff affected.
8 locations tracked
HCA Healthcare (partial)
Owned by Bain Capital
Bain Capital, KKR, and Merrill Lynch took HCA private in 2006 for $33B — the largest LBO in history at the time. Known for aggressive cost-cutting, staff reductions, and controversial dividend recapitalizations totaling billions before the 2011 IPO.
0 locations tracked
Hospital Corporation of America — Parallon
Owned by Bain Capital
Business services spinoff created during Bain/KKR's HCA ownership. Provided revenue cycle management and workforce solutions to hospitals. Merged back into HCA in 2019.
0 locations tracked
Kinetic Concepts (KCI)
Owned by Warburg Pincus
Apax Partners, CPPIB, and PSP Investments bought KCI (wound care devices and services) from PE consortium for $6.3B in 2011. Warburg Pincus was part of the prior consortium. KCI serves hospitals with negative pressure wound therapy — pricing practices have been subject to Medicare fraud investigations.
0 locations tracked
Prospect Medical Holdings
Owned by Leonard Green & Partners
Leonard Green extracted $400M+ through dividend recaps and management fees while hospitals deteriorated. Multiple facilities closed or in crisis 2023-2025. Subject of congressional investigation.
3 locations tracked
Steward Health Care
Owned by Cerberus Capital
Cerberus sold off hospital real estate in sale-leaseback deals extracting ~$800M, loaded debt, and extracted dividends while hospitals deteriorated. Patients suffered, multiple states investigated. Filed bankruptcy in 2024.
5 locations tracked