7 hours Ago
When Northern Light closed Inland Hospital several weeks ago, the announcement confirmed the financial mess that Maine’s second largest health care system is in — $617 million in debt. This desperate situation leaves all of Northern Light vulnerable to a buyout by private equity groups. The problem here is that research shows private equity-owned hospitals provide worse care at higher prices.
The owners often strip their hospitals of valuable assets for short-term profits, and too often close the hospitals altogether. When the private equity Steward Group purchased hospitals in Massachusetts, the quality of care sank dramatically. When, due to poor management, Steward ultimately went bankrupt , two of those hospitals, one rural and one urban, didn’t survive.
Private equity is capitalism on steroids. It seeks a return on investment as high and as fast as possible. Its goals are incompatible with health care, where patient well-being, not profit, should be the primary concern.
Currently, there is a bill before the state Legislature that would place a five-year moratorium on private equity groups purchasing Maine hospitals. LD 985 would give legislators time to develop rules to either prevent private equity groups from buying hospitals or at least tightly regulate their purchase. Too many Maine hospitals are in dire financial straits these days, but private equity acquisition is not the answer.
It could diminish the quality of care without eliminating the risk of shutting down. Tell our legislators to support LD 985, so Maine can avoid making a bad situation worse. David Jolly Penobscot We believe it’s important to offer commenting on certain stories as a benefit to our readers.
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