Key Takeaways
- • Campaign for Accountability (CfA) reports that private equity-owned hospitals netted $669 more per patient than comparable hospitals with other ownership structures, according to its statistical analysis of new hospital cost data.
- • CfA finds private equity acquisition has no statistically significant effect on hospital operating costs per patient, indicating the gap reflects pricing rather than efficiency gains.
- • The profit-margin gap was largest for privately insured patients, where hospitals have greater latitude to set prices.
- • The number of healthcare businesses acquired by private equity firms rose from 352 in 2010 to 937 in 2020, per HHS data cited by CfA; 65% of physician practice acquisitions between 2019 and 2023 were completed by private equity firms.
- • CfA Executive Director Michelle Kuppersmith says the findings are intended to help regulators and legislators develop policy responses.
Summary
Campaign for Accountability (CfA), a nonpartisan nonprofit watchdog, released a report on June 25, 2026 asserting that private equity firms are driving up healthcare costs and contributing significantly to the American affordability crisis. Based on its statistical analysis of new hospital cost data, CfA found that private equity-owned hospitals netted $669 more per patient than comparable hospitals with other ownership structures.
CfA argues the difference cannot be attributed to efficiency. Its analysis found that private equity acquisition has no statistically significant effect on hospital operating costs per patient. The profit-margin gap between private equity-owned and other hospitals was highest for privately insured patients, a segment in which hospitals have greater latitude to set prices.
Beyond its new statistical work, the report reviews healthcare spending data, litigation, regulatory investigations, investor materials, and media reports, which CfA says support its conclusion that private equity has driven up costs. The organization cites U.S. Department of Health and Human Services figures showing private equity acquisitions of healthcare businesses rising from 352 in 2010 to 937 in 2020. CfA also reports that 65% of physician practice acquisitions between 2019 and 2023 were completed by private equity firms.
CfA Executive Director Michelle Kuppersmith said the organization wants regulators and legislators to understand private equity's role in rising costs so they can craft appropriate policy. She acknowledged that private equity is not the only driver of affordability problems, but said the evidence shows its investment model adds strain to a system already struggling to serve patients.
The report is advocacy research from an organization that describes itself as a watchdog; its findings are CfA's own and have not been independently verified in the primary source.
CfA argues the difference cannot be attributed to efficiency. Its analysis found that private equity acquisition has no statistically significant effect on hospital operating costs per patient. The profit-margin gap between private equity-owned and other hospitals was highest for privately insured patients, a segment in which hospitals have greater latitude to set prices.
Beyond its new statistical work, the report reviews healthcare spending data, litigation, regulatory investigations, investor materials, and media reports, which CfA says support its conclusion that private equity has driven up costs. The organization cites U.S. Department of Health and Human Services figures showing private equity acquisitions of healthcare businesses rising from 352 in 2010 to 937 in 2020. CfA also reports that 65% of physician practice acquisitions between 2019 and 2023 were completed by private equity firms.
CfA Executive Director Michelle Kuppersmith said the organization wants regulators and legislators to understand private equity's role in rising costs so they can craft appropriate policy. She acknowledged that private equity is not the only driver of affordability problems, but said the evidence shows its investment model adds strain to a system already struggling to serve patients.
The report is advocacy research from an organization that describes itself as a watchdog; its findings are CfA's own and have not been independently verified in the primary source.
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