Around 14% of psychiatric hospitals were private equity-owned in 2021, according to a study published May 22 in JAMA Psychiatry.
In 2013, around 8% of psychiatric hospitals were private equity-owned.
The study was conducted by researchers at Washington University in St. Louis and the Yale School of Public Health in New Haven, Conn. Little research exists on the effect of private equity on care quality in psychiatric hospitals, according to the authors.
Here are five findings to note:
- Smaller hospitals were more likely to be owned by private equity. Private equity ownership accounts for around 6% of overall beds available in psychiatric hospitals.
- Two-thirds of private equity-owned psychiatric hospitals are in the southern U.S.
- Private equity ownership was associated with significantly lower staffing ratios per patient day for registered nurses and social workers.
- Despite lower staffing ratios, private equity-owned facilities outperformed non-private-equity-owned facilities on several quality metrics, including lower hours of restraint use and patient readmissions, and higher rates of 7-day and 30-day follow-ups.
- Private equity’s impact on the quality of care at facilities is unclear, the study authors concluded. Patient experience reporting measures recently implemented by CMS could provide a better view of this care in the future, they said.
Read the full study here.
