Watchdog warns of risks to patients as private equity’s stake in US healthcare grows

One of the most heavily scrutinized practices of healthcare investors, including in the case of Steward, is the sale-leaseback. In a sale-leaseback, a healthcare provider (often a hospital) sells the property to an REIT. The property is then leased back to the hospital. Sale-leasebacks provide a cash infusion to both partners in the venture, investors and the healthcare business, but have been criticized for saddling hospitals – many of which were built on the public dime – with added expenses…

 https://www.theguardian.com/us-news/2026/jul/06/us-private-equity-healthcare-joint-ventures

 

Private equity reduces patient care while enriching investors, Senate report finds

"As our investigation revealed, these financial entities are putting their own profits over patients, leading to health and safety violations, chronic understaffing, and hospital closures," Whitehouse said in a statement. "Private equity investors have pocketed millions while driving hospitals into the ground and then selling them off, leaving towns and communities to pick up the pieces."

https://www.nbcnews.com/news/investigations/private-equity-reduces-patient-care-enriching-investors-senate-report-rcna186636