{"id":2698,"date":"2023-07-24T01:19:01","date_gmt":"2023-07-24T01:19:01","guid":{"rendered":"http:\/\/thisbiginfluence.com\/?p=2698"},"modified":"2023-07-24T01:19:01","modified_gmt":"2023-07-24T01:19:01","slug":"how-private-equity-firms-raided-safety-net-hospitals","status":"publish","type":"post","link":"https:\/\/thisbiginfluence.com\/?p=2698","title":{"rendered":"How Private Equity Firms Raided Safety Net Hospitals"},"content":{"rendered":"


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What You Ought to Know:\u00a0<\/strong><\/p>\n

\u2013 A brand new investigation by the Private Equity Stakeholder Project (PESP) <\/a>reveals, for the primary time, personal fairness (PE) traders had been behind a security web hospital closure within the Chicago space after making damaged guarantees to regulators.<\/p>\n

\u2013 The report, \u201cHow private equity raided safety net hospitals: Volume 2\u2014Pipeline Health<\/a>,\u201d written by PESP researcher Mary Bugbee, highlights the pitfalls of personal fairness possession of hospitals, together with the monetization of hospital actual property, speedy enlargement on the expense of firm well being, large-scale layoffs, and hospital closures.<\/p>\n

Pipeline\u2019s Enlargement to Chicago Results in Hospital Closure and Bankruptcies<\/strong><\/p>\n

Pipeline Health<\/a>, a safety-net hospital chain owned by personal fairness corporations Stanton Road Capital<\/a>, Deerfield Management<\/a>, and Davidson Kempner Capital Managemen<\/a>t, broke guarantees to state regulators when it bought, after which promptly moved to shut, a security web hospital that served a predominantly Black and Latino inhabitants in Chicagoland. The healthcare firm bought Westlake Hospital in Melrose Park, IL earlier than saying its intentions of shutting down the hospital mere weeks after its acquisition. Pipeline and its PE house owners purchased Westlake, alongside two different Chicago-area hospitals, in 2019 for a mere $5 million. After the chapter and closure of Westlake, they had been in a position to then promote the remaining two hospitals for a monumental $92 million\u2014over 18 occasions what they paid for all three hospitals.<\/p>\n

The report additionally identifies, for the primary time, the connections between Joel Freedman, an investor behind the closure of Hahnemann Hospital<\/a> in Philadelphia, and the traders in Pipeline Well being.<\/p>\n

\u201cSadly, Pipeline\u2019s story is a well-known one,\u201d stated Mary Bugbee, report creator and PESP healthcare researcher. \u201cTwo different security web hospitals owned by personal fairness traders, together with Hahnemann, closed the identical yr that Westlake did.\u201d<\/p>\n

In regulatory filings earlier than the acquisition of Westlake, Pipeline had dedicated to retaining the hospital open for not less than two years. The local people fought again with a authorized problem to save lots of Westlake after Pipeline acquired regulatory approval to shut it, however Pipeline was in a position to shut the hospital by having the hospital\u2019s holding firm declare chapter. Within the following chapter proceedings, it was revealed that the hospital\u2019s closure had been a situation of Pipeline\u2019s acquisition settlement with the vendor.<\/p>\n

Pipeline\u2019s actions in Chicago resulted within the chapter and closure of a security web hospital, mass layoffs of over 500 staff, and the sale of property zoned for hospital use to be transformed into luxurious housing regardless of heavy opposition. Via its use of over two dozen subsidiaries and holding firms, Pipeline\u2019s traders have, till now, been in a position to conceal within the shadows and defend their belongings from losses, whereas native communities are left to choose up the items in an unsure future. Pipeline continues to personal and function 5 hospitals in Texas and California. Pipeline\u2019s traders even have confronted, so far, few penalties for his or her enterprise practices that shuttered a security web hospital and harmed communities.\u00a0<\/p>\n

\u201cWe’d like larger vigilance from lawmakers, regulators, and authorities officers to counter the threats related to personal fairness possession of security web hospitals,\u201d Bugbee stated. \u201cExtra stringent rules paired with larger accountability measures can deter traders hoping to make a fast buck on the expense of communities, in addition to maintain them accountable once they do.\u201d<\/p>\n<\/div>\n


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What You Ought to Know:\u00a0 \u2013 A brand new investigation by the Private Equity Stakeholder Project (PESP) reveals, for the primary time, personal fairness (PE) traders had been behind a security web hospital closure within the Chicago space after making damaged guarantees to regulators. \u2013 The report, \u201cHow private equity raided safety net hospitals: Volume […]<\/p>\n","protected":false},"author":1,"featured_media":2700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[3369,3370,3373,1419,2481,3371,3372],"class_list":["post-2698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-equity","tag-firms","tag-hospitals","tag-net","tag-private","tag-raided","tag-safety"],"_links":{"self":[{"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=\/wp\/v2\/posts\/2698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2698"}],"version-history":[{"count":0,"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=\/wp\/v2\/posts\/2698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=\/wp\/v2\/media\/2700"}],"wp:attachment":[{"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thisbiginfluence.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}