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New Senate Report Details How Private Equity 'Devastates' Hospital Systems
Key Excerpts from Article on Website of Common Dreams
Posted: August 31st, 2025
https://www.commondreams.org/news/private-equity-hospitals-2...
A US senator on Wednesday released a report that detailed how private equity firms have ruined hospitals in his home state and across the country. The report from Sen. Chris Murphy (D-Conn.) documented what happened when three Connecticut hospitals—Waterbury Hospital, Rockville General, and Manchester Memorial—were bought by Prospect Medical Holdings, a private equity-backed healthcare firm. Ramona, an operating room assistant at Waterbury Hospital cited in the report, explained how Prospect went to extreme lengths to avoid spending money. She explained to Murphy that Prospect at one point stopped paying vendors, which resulted in supplies eventually growing "so scarce patients were sometimes left on the operating table while staff scrambled" to find the necessary equipment. Staff members eventually started buying supplies themselves, with some even going so far as to buy food for their patients to ensure that they did not go hungry. Prospect didn't just skimp on buying supplies for the hospitals but also on maintaining the buildings themselves. A unit secretary at Waterbury Hospital named Carmen told Murphy's staff of two instances where the ceiling at the building literally fell down due to years of neglect. Murphy's report also emphasized that the story of private equity stripping hospitals for parts is not unique to his state. "The story of these three Connecticut hospitals is playing out in healthcare systems all over the country," it said.
Note: According to this Guardian article, "More and more people, especially the relatively poor, may live almost their entire lives in systems owned by one or another private equity firm: financiers are their landlords, their electricity providers, their ride to work, their employers, their doctors, their debt collectors." For more along these lines, read our concise summaries of news articles on health and financial system corruption.
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