At its best, private equity ownership in the healthcare industry can revive struggling hospitals or reinvigorate stagnant ones, but at its worst, it can jeopardize hospital operations, ACHI Health Policy Director Craig Wilson writes in a guest column for Talk Business & Politics.
Two Wadley Regional Medical Center facilities, one in Hope and one in Texarkana, Texas, were suddenly at risk of closure when their owner, Steward Health Care, declared bankruptcy in May. Both hospitals have been purchased by new owners, allowing them to stay open, but the story is a cautionary tale, Wilson writes. He discusses how private equity’s growing role in health care has come under increased scrutiny from federal regulators, Congress, and legislators in many states.
