It is the title of recent paper by Gao, Kim and Sevelir (2025). The author examines the merger and acquisition of 1218 hospitals (M&A) deals in the hospital industry between 2001 and 2008. The author focuses with beneficial institutions to focus perfectly on M&A as they argue that they want to check whether private equity (PE) especially affects PE and Non-PIS benefits for other types. They strand the sample on the grounds whether the acquirer was a beneficial organization or not (ie, private equity (PE) firm, PE-owned hospital or PE owned hospital).
Based on this approach, the authors feel that:
Target Hospitals maintain their survival rate by reducing employment and wage expenditure. The number of chief medical workers fall temporarily, but returns to its pre-acquisition level in a long time. However, administrative jobs and wages cuts persist over the long term, especially in the first non -profit hospitals. Using the data of proprietary insurance claims, we do not get any significant change in PE-Operational Hospitals in-thepertiah demographics or in-post prices. While the patient’s satisfaction declines, there is no evidence of an increase in patient mortality or reading rate in PE-Oddly Hospitals.
Note that in this analysis, “survival” means that the hospital survived (ie, remained open) or not.
What did the authors use the data reaching these conclusions?
The author follows the approach to identifying M&A deals. 2018, and the author originally repeats it and extends it in future years. Overall, the data used includes: use data from:
- M&A deals: The annual survey of the American Hospital Association (AHA) hospitals to identify changes in the ownership of individual hospitals.
- PE ownership In the review of the Baker’s hospital, it was determined via data from prequel, capitaliq and details.
- Hospital characteristicsHealthcare Costreport Information System (HCRIS) system of CMS. These characteristics include: total assets, and returns on property, hospital size (#of beds) gross and net sales, number of patients, and case mix index, employment (full -time equivalent employees), and complexity of operation based on employee wages.
- Patient characteristicsThe Health Care Cost Institute (HCCI) was identified with data. It is used to create a risk-dominated inpatient price index.
- Patient resultsDeath rate and redmission rates are collected from CMS hospital. Major quality results include heart attack (AMI), heart failure (HF), and 30-day mortality from pneumonia (PN), as well as 30-day reduction rates after treatment for similar conditions.
- Patient satisfactionFrom healthcare providers and systems (HCAHPS) survey.
Which empirical functioning was used?
Authors used a matched sample analysis (aka nearest neighbor) to analyze. Acquired hospitals are matched with non-altruistic hospitals and both are required to have at least two years of data before the event year. Within this pool, the author finds a “nearest neighbor” hospital based on a Mahalanobis matching method with replacement. Changes in results are measured in short-term (compared to 1-4 post acquisition compared to 4 years ago) and long lasting (for 5-8 post acquisition compared to 4 years pre-acquisition). This approach follows the functioning developed by Schmitt 2017 and Praager and Schmit 2021.
You can read more information about their results and functioning in full paper Here,
