Private equity hospital ownership has reached 11.9% as industry stakeholders debate how these firms impact costs and clinical quality.

The tracker is based on CMS lists of all Medicare-enrolled hospitals, ranging from acute care to specialty hospitals. Of the 4,714 facilities included in the tracker, 561 are backed by PE, up from 488 in March 2025, per separate reporting from ZoomInvestors.

These findings raise questions about the role of PE in healthcare and how it affects costs and quality, PESP said.

Private equity firms generally aim to acquire businesses then sell them at a profit in a few years. Although one 2022 study showed that PE-affiliation didn't affect cost or quality for patients suffering myocardial infarction, other data tell a different story. Patients who get care at private equity-owned hospitals have higher fall and infection rates, according to another study published in 2023.

Meanwhile, PE ownership has been linked to bankruptcies of major hospital systems, like Steward Health Care and Prospect Medical Holdings, and closures of many others.

According to PESP, there's limited regulation of hospital ownership, making it hard to track which hospitals are owned by PE firms and the quality outcomes they yield. The watchdog group was only able to obtain ratings data for 17% of the PE-owned hospitals included in its tracker.

The bulk of facilities scored three stars or less. Facilities not owned by private equity got around four to five stars.

The tracker also flagged the types of hospitals PE firms tend to own.

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