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Private Equity Drives Up Healthcare Costs in Michigan

2/14/2025

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Summary

Private Equity's Impact

Rising healthcare costs in Upper Michigan stem from private equity ownership prioritizing profits over patient care.
Apollo Global Management's purchase of LifePoint Health has resulted in increased debt and higher patient bills.
A Senate investigation connects private equity to reduced hospital quality and service cuts, especially in rural regions.
The average hospital stay in Michigan costs nearly $11,000, with UPHS
Marquette performing below average in patient safety.

Summary

Private Equity's Influence

In 2024, private equity firms were associated with over 50% of large corporate bankruptcies, with healthcare representing 21%.
Seven of the eight largest healthcare bankruptcies involved private equity ownership, underscoring its influence in the sector.
Steward Health Care's Chapter 11 bankruptcy was the largest in the hospital sector in decades, impacting 31 hospitals.
The Private Equity Stakeholder Project cautions that aggressive cost-cutting threatens patient access to essential care.
This trend raises significant concerns for policymakers and consumers about the sustainability of healthcare services.

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Private Equity's Impact

Rising healthcare costs in Upper Michigan stem from private equity ownership prioritizing profits over patient care.
Apollo Global Management's purchase of LifePoint Health has resulted in increased debt and higher patient bills.
A Senate investigation connects private equity to reduced hospital quality and service cuts, especially in rural regions.
The average hospital stay in Michigan costs nearly $11,000, with UPHS
Marquette performing below average in patient safety.

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