April 5, 2024
ACEP on the Hill
Senate Looks into Private Equity & EM
On Monday, Senate Homeland Security and Governmental Affairs Committee (HSGAC) Chair Gary Peters (D-MI) issued several letters seeking information about private equity investments in hospital emergency departments and potential impacts on patient care. The effort is a result of Committee staff interviews with more than 40 emergency physicians across the country about their experiences in hospitals and staffing companies owned by or associated with private equity firms. Different letters were sent to US Acute Care Solutions (USACS) and Apollo Global Management, Envision and KKR & Co., Inc, TeamHealth & Blackstone, and Lifepoint Health and Apollo Global Management.
And on Wednesday, the Senate Health, Education, Labor, and Pensions (HELP) Committee Subcommittee on Primary Health and Retirement Security held a field hearing in Boston to examine the negative impact of private equity on health care. Led by Subcommittee Chair Ed Markey (D-MA) and Senator Elizabeth Warren (D-MA), the hearing focused on the Steward Health Care system as emblematic of the broader impacts of private equity investments in health care. The Senators cited Steward’s recent financial difficulties, including hospital closures and nationwide service reductions, as key examples, and highlighted the recent deal to sell its physician network to UnitedHealth Group subsidiary Optum, which has continued to acquire more physicians throughout the country. Among the witnesses was emergency physician Ellana Stinson, MD, MPH, MBA, who provided testimony on the consequences of private equity's influence and her experience in the Steward health system, noting diminished care quality and strained resources for physicians. The Senators both urged legislative and regulatory reform to curb exploitative practices and enhance health sector transparency, including Senator Warren's proposed overhaul of the private equity industry and Chair Markey's Health Over Wealth Act, a new draft legislative proposal intended to protect patient care from profit-driven compromises.
ACEP continues to work with HSGAC as they continue their efforts pertaining to emergency medicine and is reviewing the Health Over Wealth Act to provide our comments and perspective on the bill.