Ronan Farrow Highlights Hospital Debt Crisis Driven by Private Equity

Farrow details a common industry playbook where firms like The Carlyle Group, Cerberus, and Pinta acquire healthcare facilities using heavy leverage. Typically, more than 70% of the purchase price is borrowed, with the resulting debt and interest obligations transferred directly onto the facility’s own books. This strategy often includes selling off hospital buildings and charging the facility rent, effectively draining capital that would otherwise fund medical services.

Evidence of the human cost is mounting. A 2023 study published in The Review of Financial Studies linked private equity ownership to an 11% increase in patient mortality, representing over 20,000 lives lost. Further data from 2025 indicates that emergency room worker salaries dropped by an average of 18% following such acquisitions, while rates of hospital-acquired infections and complications spiked by 25%.

Beyond traditional buyouts, firms are increasingly forming joint ventures with nonprofits to evade scrutiny. Jim Baker, executive director of the Private Equity Stakeholder Project, notes that this evolving strategy allows firms to siphon profits from critical infrastructure with far less regulatory oversight. While some firms argue they rehabilitate distressed facilities, Farrow maintains that the pattern of harm is consistent and currently outpaces existing federal regulations.