TDNet Discover

The quasi-experiential research will focus on the effects of private equity (PE) acquisition regarding patient results in rural hospitals located in the Southeastern US between 2016 and 2022. The research will be significant as a response to fears regarding the effects of private equity in rural healthcare which is already under a lot of pressure. The Stakeholder Theory looks at how various parties interact and how the potential effect of the acquisition affects the stakeholders. The study sample will include 42 rural hospitals, identified by the Private Equity Stakeholder Project’s (PESP) Hospital Tracker as purchased by PE firms during 2018, and a comparable set of control rural non-acquired hospitals within the same region and during the same time. The study seeks to show shifts in the rates of Hospital Acquired Conditions (HACs), as well as patient experience rates which will be extracted via Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) survey. A quasi-experimental design with a matched control group examined variations in HACRP and HCAHPS scores for PE-acquired and non-acquired rural hospitals during pre-acquisition (2016 – 2017) and post-acquisition (2019 – 2022) periods. Statistical analyses revealed no significant overall changes in HACRP scores but identified substantial declines in HCAHPS scores for PE-acquired hospitals post-acquisition. Recommendations include further research into mechanisms linking financial restructuring to patient outcomes and strategies to balance financial objectives with stakeholder welfare in rural healthcare settings.