Private equity firms have been buying up hospitals and other medical centers at a rapid pace over the past decade or so. These deals are often pitched as a way to make healthcare run more efficiently. However, the reality for patients can look very different. Efforts to slash costs, such as by cutting staff, can lead to a noticeable drop in the quality of care you receive.
This trend is worth paying attention to. If something goes wrong with your treatment at one of these facilities, it could become part of a valid medical malpractice claim. Continue reading to learn more about the rise of private equity in the healthcare industry and what you can do if you’ve been injured.
How Private Equity Is Changing Healthcare
Private equity (PE) firms raise money from investors and use it to acquire companies. Most often, their goal in these circumstances is to turn a profit within a few years. As a result, when these firms take over healthcare practices, they often look for fast ways to cut costs.
Some of the most common changes include:
- Cutting the number of employees working at a given time
- Bringing in less experienced providers to replace seasoned doctors
- Pushing each provider to treat more patients per shift
- Scaling back on important but expensive equipment and other expenses
- Making appointment times shorter so more patients can be seen each day
These types of changes put patients in a tough spot. Decisions driven by budgets rather than health can lead to medical mistakes that should never happen.
The Link Between Private Equity and Medical Malpractice
Medical malpractice occurs when a healthcare provider fails to meet the accepted standard of care, and that failure results in harm to a patient. PE ownership can make this more likely when it leads to dangerous cost-cutting.
For example, a hospital that reduces its nursing staff may not have enough people on hand to notice when a patient’s condition is getting worse. Alternatively, a doctor who is expected to see 40 patients a day instead of 25 is far more likely to miss something critical.
These are not hypothetical situations. Research published in medical journals has connected PE ownership of healthcare facilities to worse patient outcomes, including higher rates of infections and surgical complications.
Why These Cases Can Be Harder to Win
Pursuing a malpractice claim against a PE-backed healthcare provider is often more complex than a standard case. PE firms tend to use layered corporate structures, meaning the facility where you received care might be owned by one entity, yet managed by another. Figuring out exactly who bears liability for your injury may require a thorough legal investigation.
These firms also tend to have significant resources for their legal defense. That reality makes having experienced representation on your side all the more important.
Contact the Miami Medical Malpractice Lawyers at Zayed Law Offices Personal Injury Attorneys for a Free Consultation
Private equity’s presence in healthcare likely isn’t slowing down any time soon. As more practices and hospitals come under PE ownership, patients should stay aware of how it may impact their care. If cost-saving measures led to a serious medical error that harmed you, you may be entitled to compensation.
Zayed Law Offices Personal Injury Attorneys can help you pursue the compensation you deserve. You can learn about your legal options and have someone in your corner who will fight for you every step of the way. For more information, please contact the experienced Miami personal injury lawyers at Zayed Law Offices Personal Injury Attorneys today. We offer free consultations.
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Zayed Law Offices Personal Injury Attorneys
169 E Flagler St Suite 1639, Miami, FL 33131
Phone: (305) 916-6455
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