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
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.
4 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.
7 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.
6 locations tracked