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What Next | Daily News and Analysis

TBD | When Private Equity Gets in to Health Care

What Next | Daily News and Analysis

Slate

News, Daily News, News Commentary, Politics

4.62.3K Ratings

🗓️ 17 March 2024

⏱️ 26 minutes

🧾️ Download transcript

Summary

Private equity firms have been buying up doctors’ offices and hospitals around the country. But if profits are the primary goal, what happens to the cost and quality of healthcare for patients? Guest: Gretchen Morgenson, senior financial reporter for the NBC News Investigative Unit and co-author of “These Are the Plunderers: How Private Equity Runs—and Wrecks—America” Want more What Next TBD? Subscribe to Slate Plus to access ad-free listening to the whole What Next family and all your favorite Slate podcasts. Subscribe today on Apple Podcasts by clicking “Try Free” at the top of our show page. Sign up now at slate.com/whatnextplus to get access wherever you listen. Podcast production by Evan Campbell, Patrick Fort, and Anna Phillips. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

If your employer sends you an email telling you to quote, get that money, you probably work in sales, right? Maybe you're a real estate agent. But what if I told you

0:16.1

I'm talking about an email that went out to doctors?

0:19.7

NBC News Financial reporter Gretchen Morganson heard about this a few years ago.

0:27.0

My background is on Wall Street and this all sounded very familiar to me, you know, about encouraging people to make sales, you know, to make a quota, you know, at the end of the month or something. That's a very Wall Street thing to do.

0:41.0

The email was shared with Gretchen by a dermatologist in Michigan named

0:45.0

Allison Brown. Dr. Brown's office had recently been bought out by a private

0:49.4

equity firm and the firm was pushing doctors to book more patients to meet budget goals,

0:54.4

offering up bonuses if they succeeded.

0:57.1

The effort to do sales was part of a larger shift in care

1:00.3

that Dr Brown noticed once private equity took over.

1:03.0

She had had to see so many more patients every day and she didn't have the adequate support staff to see those patients.

1:14.1

She also described cases of patients seen multiple times for a problem that could have been

1:21.3

resolved in a single visit. Now that of course raises those

1:25.5

patients costs. But this isn't just happening in Dr Brown's former office in

1:30.8

Michigan or just in dermatology.

1:33.9

Around the country, private equity is buying up doctor's

1:36.7

offices, clinics, and hospitals, hoping to turn a profit

1:40.9

in an industry where the stakes are literally life or death.

1:44.8

My reporting has found that 40% of emergency departments in hospitals are run by private equity staffing companies.

1:55.0

11% of nursing homes are owned by private equity.

1:59.6

And that is probably a low number

2:02.3

because there are sort of hidden ownership of nursing homes the way they're structured.

...

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