How Should We Assess Quality of Health Care Services in Organizations Owned by Private Equity Firms?

Abstract

This article assesses research on private equity ownership's influence on health care quality. A review of several prominent studies supports the conclusion that private equity ownership does not have a universally positive or negative effect. Past research has found that providers backed by private equity generally have mixed quality outcomes post acquisition, depending on the sector and measures evaluated. This article outlines ways in which research findings are misconstrued and cautions against drawing conclusions from a narrow sample of literature about private equity based on studies in one sector.