Key Takeaways
- • A single $3.9 billion acquisition, Select Medical by a consortium including Welsh, Carson, Anderson & Stowe, pushed private equity ownership to 12% of U.S. private hospitals, according to PESP's updated tracker.
- • PESP's tracker counts 561 PE-owned hospitals nationwide, up from 447 in July 2026, and 33.6% of proprietary for-profit hospitals, up from 26.8%.
- • Welsh, Carson, Anderson & Stowe is now the second-largest PE hospital owner identified in the tracker, with 124 hospitals through Select Medical and Emerus Hospital Partners.
- • Select Medical filed a late notice of material change with the Massachusetts Health Policy Commission on October 15, more than three months after the July 1 acquisition; the filing was under review as of October 27.
- • At least 144 PE-owned hospitals use REIT-owned real estate, and 23% operate through joint ventures with nonprofit health systems.
Summary
A single $3.9 billion acquisition has pushed the share of private equity-owned hospitals in the United States to nearly one in eight private hospitals, or 12%, according to an updated Private Equity Hospital Tracker from the Private Equity Stakeholder Project (PESP). The update, PESP's second of 2026 and issued just months after its July release, was prompted by the acquisition of Select Medical by a consortium that includes private equity firm Welsh, Carson, Anderson & Stowe.
The tracker identifies 561 private equity-owned hospitals nationwide, up from 447 in July 2026. PE-owned hospitals now account for 11.9% of all private hospitals, compared with 9.5% in July, and 33.6% of proprietary for-profit hospitals, up from 26.8%. Welsh, Carson, Anderson & Stowe is now the second-largest PE hospital owner in the tracker, with 124 hospitals through Select Medical and Emerus Hospital Partners.
PESP executive director Jim Baker said the industry "is still placing multi-billion-dollar bets on hospitals, even after the devastating failures at systems like Steward Health Care, and Prospect Medical Holdings/Crozer Health." He argued that policymakers need to take that risk seriously.
The Select Medical deal has also raised compliance questions in Massachusetts, which requires advance notice of certain healthcare transactions, generally at least 60 days before they take effect. The state enacted its healthcare transaction oversight law in early 2025 following the collapse of Steward Health Care. After PESP contacted the Massachusetts Health Policy Commission (HPC) in August, the commission contacted Select Medical and determined that a notice of material change should have been filed. Select Medical filed on October 15, more than three months after the July 1 acquisition. As of October 27 the notice was under review, and no further status information is publicly available.
PESP's tracker also documents complex ownership structures, including real estate investment trusts (REITs) and joint ventures with nonprofit health systems. It finds at least 144 PE-owned hospitals with REIT-owned real estate and 23% operating through joint ventures with nonprofits. PESP argues that with a new Congress and new state legislators taking office after the midterms, lawmakers should address hospital ownership transparency and oversight of transactions affecting healthcare access and quality. The full tracker is available at pestakeholder.org.
The tracker identifies 561 private equity-owned hospitals nationwide, up from 447 in July 2026. PE-owned hospitals now account for 11.9% of all private hospitals, compared with 9.5% in July, and 33.6% of proprietary for-profit hospitals, up from 26.8%. Welsh, Carson, Anderson & Stowe is now the second-largest PE hospital owner in the tracker, with 124 hospitals through Select Medical and Emerus Hospital Partners.
PESP executive director Jim Baker said the industry "is still placing multi-billion-dollar bets on hospitals, even after the devastating failures at systems like Steward Health Care, and Prospect Medical Holdings/Crozer Health." He argued that policymakers need to take that risk seriously.
The Select Medical deal has also raised compliance questions in Massachusetts, which requires advance notice of certain healthcare transactions, generally at least 60 days before they take effect. The state enacted its healthcare transaction oversight law in early 2025 following the collapse of Steward Health Care. After PESP contacted the Massachusetts Health Policy Commission (HPC) in August, the commission contacted Select Medical and determined that a notice of material change should have been filed. Select Medical filed on October 15, more than three months after the July 1 acquisition. As of October 27 the notice was under review, and no further status information is publicly available.
PESP's tracker also documents complex ownership structures, including real estate investment trusts (REITs) and joint ventures with nonprofit health systems. It finds at least 144 PE-owned hospitals with REIT-owned real estate and 23% operating through joint ventures with nonprofits. PESP argues that with a new Congress and new state legislators taking office after the midterms, lawmakers should address hospital ownership transparency and oversight of transactions affecting healthcare access and quality. The full tracker is available at pestakeholder.org.
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