Bipartisan Senate report slams private equity's "detrimental effects" on hospitals

Two private equity firms' efforts to wring profits out of hospitals in underserved communities put patients in danger, according to a new report released Tuesday by a powerful Senate committee.

The 162-page report by the Senate Budget Committee comes as Americans continue to express outrage over the role of corporations in the U.S. healthcare system, following the December killing of the CEO of the nation's largest health insurer. And its findings add to a chorus of lawmakers trying to address the detrimental impact of private equity ownership on critical U.S. hospitals — a subject that has been the focus of a two-year CBS News investigation.

"Private equity has infected our health care system, putting patients, communities, and providers at risk," said Sen. Sheldon Whitehouse, a Democrat from Rhode Island who led the investigation with Sen. Chuck Grassley, a Republican from Iowa.

"As our investigation revealed, these financial entities are putting their own profits over patients, leading to health and safety violations, chronic understaffing, and hospital closures," Whitehouse said.

https://www.cbsnews.com/news/senate-report-private-equity-hospitals/