Vultures in Health Care
Kaiser Health News had an incredible story about greed in the health care industry. Vulture capitalism controls health care in America. Private equity is a major problem. Deep-pocketed Wall Street firms plowed $206 billion into more than 1,400 health care acquisitions according to industry tracker PitchBook.
Private equity firms and related entities profit by violating federal false claims and anti-kickback laws or through other profit-boosting strategies that could harm patients. KHN found that companies owned or managed by private equity firms paid fines of more than $500 million for at least 34 lawsuits filed under the False Claims Act
The KHN investigation found evidence is overwhelming that their involvement led to higher prices and diminished quality of care. Waste, fraud, and abuse are rampant. Private equity finds ways to bill more for medical services. They also limit services. Unsafe staffing is common. They cut staff; offer low wages and no benefits; and hire unqualified caregivers. The lack of training and resources for the staff makes it impossible to properly care for the residents or meet their safety needs.