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MEDICAL MALPRACTICE ERRORS RISE IN HOSPITALS OWNED BY PRIVATE EQUITY FIRMS

Published by Bill Laubscher at April 9, 2024
building with a lot of windows and the word hospital on the front

Most hospital patients are focused on receiving the medical care they need to recover and return home as quickly as possible. They are rarely concerned about who owns the hospital. Nevertheless, the incidence of serious medical errors is significantly higher in hospitals owned by private equity firms, according to a recent study published in the Journal of the American Medical Association (JAMA). Medical errors are more prevalent than most people imagine, and it takes a high level of legal expertise and experience to build a winning case.

Therefore, hiring an experienced medical malpractice lawyer is the best way to receive the compensation you and your family deserve.

 

Do You Have a Case?

 

WHAT WAS THE BASIS FOR THE STUDY?

Over the past several years, an increasing number of hospitals, nursing homes and other medical facilities have been purchased by private equity firms. While the financial outcomes of these acquisitions have been assessed, the impact on patient care was relatively unexplored.  

Consequently, a group of researchers analyzed Medicare data from 662,095 hospitalizations at 51 private equity-acquired hospitals in comparison to 4,160,720 hospitalizations in 259 control hospitals not affiliated with private equity firms. The study evaluated hospital stays over a ten-year period between 2009 and 2019. Hospitalizations in facilities owned by private equity firms were assessed from three years before to three years after they were acquired. 

 

Recommended reading: Birth Injuries and Medical Malpractice: What Every Parent Should Know

 

WHAT DID THE STUDY REVEAL ABOUT MEDICAL MISTAKES IN PRIVATE EQUITY-OWNED HOSPITALS?

The results showed a startling 25.4 percent rise in falls, infections and other adverse events and conditions in hospitals owned and managed by private equity groups.

Serious errors and events increased in all major areas of the hospitals studied, including ICUs, operating rooms and general patient floors.

Furthermore, the majority of these mistakes, and the subsequent harm they caused, were largely due to preventable factors such as inadequate safety protocols staffing shortages.

Here are some of the most disturbing findings:

  • Falls increased 27.3 percent
  • Central line-associated bloodstream infections increased 37.7 percent, despite the placement of 16.2 percent fewer lines
  • Surgical site infections doubled from 10.8 to 21.6 per 10 000 hospitalizations, despite an 8.1 percent reduction in surgical volume

Most of the medical errors revealed by the study are considered “never events,” situations that should not happen during a hospital stay or surgical procedure.

 

Recommended reading: 10 Common Types of Medical Malpractice

 

WHAT ARE “NEVER EVENTS” IN MEDICAL MALPRACTICE CASES?

“Never events” is a phrase used to describe serious, preventable errors that should not occur under any circumstances, such as leaving a foreign object in a patient or operating on the wrong site.

The Centers for Medicare & Medicaid Services (CMS) refers to this type of event as a “Hospital-Acquired Condition (HAC)” and has implemented policies to reduce the frequency of these situations.

Lawsuits filed by medical malpractice lawyers on behalf of patients or family members often involve a “never event” caused by a negligent physician or other health care provider.

Some examples of “never events” include:

  • Operating on the wrong patient
  • Performing surgery on the wrong site or opposite limb, hand or foot
  • Using incompatible blood for a transfusion
  • Allowing a patient to develop pressure ulcers (bed sores)
  • Leaving a foreign object inside a patient after surgery
  • Surgical site infections
  • Performing the wrong surgical procedure
  • Failing to monitor anesthesia properly
  • Prescribing the wrong medication or incorrect dosage
  • Failing to protect a patient from falls or other preventable accidents
  • Causing oxygen deprivation in a newborn during labor and delivery

 

Recommended reading: How to Find the Best Medical Malpractice Attorneys in Michigan

 

WHAT CAUSED THE RISE IN MEDICAL ERRORS IN PRIVATE EQUITY-OWNED HOSPITALS?

While the study did not pinpoint a single cause for the rise in medical mistakes, researchers developed certain theories related to the private equity firms’ desire to increase profits on an accelerated schedule. In general, these investors expect large returns within a short time period, often as high as 20 – 30 percent per year.

To accomplish this, new owners tended to make staffing cuts soon after acquiring a facility. In addition, some of the hospitals tended to replace higher-salaried employees such as doctors and nurses with lower-paid workers such as aides and nursing assistants, according to previous studies.

 

Recommended reading: Medical Malpractice Cases That Still Happen Today

 

LET OUR EXPERIENCED MEDICAL MALPRACTICE LAWYERS START YOUR CASE TODAY

If you or a loved one is a victim of a medical mistake, we can help. Our knowledgeable and compassionate medical malpractice lawyers know what it takes to build a successful case and will fight to win the compensation you and your family deserve.

Medical malpractice law is complicated, but finding the right medical malpractice lawyer is simple.

Don’t let the legal clock run out. Fill out the brief form below or call 1-800-CALL-SAM today for a free, no-obligation remote consultation with a member of our experienced legal team.

 

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