Private Equity Firms have found a new target in America, Hospitals
— Wall Street Apes (@WallStreetApes) June 28, 2025
460+ American hospitals are now owned by private equity firms
Just in the last few years, they’ve already managed to load an estimated 50 hospitals up with debt, forcing their bankruptcies and closures
One… pic.twitter.com/JASeZEgoxG
460+ American hospitals are now owned by private equity firms
Just in the last few years, they’ve already managed to load an estimated 50 hospitals up with debt, forcing their bankruptcies and closures
One private equity firm bought a hospital in Pennsylvania, “ Just two years after buying Crozier Health, Prospect took out a $1.1 billion loan and then sent nearly half of it straight to their investors while Crozier continued to suffer. It's fundamentally extractive, even among private equity industry folks. It's a controversial way to generate a return on an investment because it adds absolutely no value to the company in question”
Private equity firms often use leveraged buyouts, loading acquired hospitals with debt to finance purchases. This debt, combined with strategies like sale-leaseback deals (selling hospital real estate and leasing it back to the hospital at high rents), can strain hospital finances
Here’s another example of that:
Steward Health Care, previously owned by Cerberus Capital Management, sold its real estate to Medical Properties Trust (MPT), incurring $350–400 million in annual rent, contributing to its 2024 bankruptcy
- The hospitals own the land
- Private equity buys the land and sells it to their own company
- They then leases the land back to the hospital at hundreds of millions of dollars per month
- They take out massive loans and pay their private equity executives hundreds of millions of dollars eachThe hospital goes bankrupt and closes
Last month, a woman arrived at a Pennsylvania hospital with her barely breathing baby, only to discover the hospital had closed. Why? The hospital’s owner diverted millions to private equity investors instead of investing in healthcare. Now, patients and workers are paying the price.
Replies