Key Takeaways
- • More than 500 U.S. hospitals are owned by private equity firms, representing 11.9% of all private hospitals, according to new data from the watchdog Private Equity Stakeholder Project (PESP).
- • PE firms own around a third of all for-profit hospitals in the U.S., per the PESP tracker, which is based on CMS lists of Medicare-enrolled hospitals.
- • The tracker counts 561 PE-backed facilities out of 4,714 included, up from 488 in March 2025, per separate reporting from ZoomInvestors.
- • Apollo Global Management owns 200 U.S. facilities, including Lifepoint Health and ScionHealth, while Welsh, Carson, Anderson & Stowe owns 124.
- • Only about 17% of PE-owned hospitals in the tracker had obtainable quality ratings, and most rated three stars or less versus four to five stars for non-PE hospitals.
Summary
Private equity ownership of U.S. hospitals has reached 11.9% of all private hospitals, according to new data from the Private Equity Stakeholder Project (PESP), a watchdog group. The tracker, based on CMS lists of all Medicare-enrolled hospitals ranging from acute care to specialty facilities, identifies more than 500 PE-owned hospitals. Of the 4,714 facilities included, 561 are PE-backed, up from 488 in March 2025, per separate reporting from ZoomInvestors. PE firms also own roughly a third of all for-profit hospitals in the U.S.
Ownership is concentrated among a small group of investors. Apollo Global Management, which owns Lifepoint Health and ScionHealth, controls 200 U.S. facilities, and Welsh, Carson, Anderson & Stowe owns 124. The tracker also found that nearly a quarter of PE-owned facilities are rehabilitation centers, 22.6% are long-term acute care hospitals, and 23.4% are non-specialty hospitals. Around 23% of PE-owned hospitals are held through joint ventures with nonprofit health systems, which PESP notes could allow PE-backed organizations to sidestep regulations designed to protect patient care.
Quality data remains limited. PESP obtained ratings for only 17% of PE-owned hospitals in its tracker, and most of those scored three stars or less, compared with roughly four to five stars for non-PE facilities. Research on outcomes is mixed: a 2022 study found PE affiliation did not affect cost or quality for patients with myocardial infarction, while a 2023 study linked PE-owned hospitals to higher fall and infection rates. PE ownership has also been associated with the bankruptcies of Steward Health Care and Prospect Medical Holdings and with closures at other facilities.
Regulatory scrutiny is increasing. PESP says hospital ownership is lightly regulated, which makes PE holdings difficult to track. Following the Steward and Prospect bankruptcies, bipartisan action has followed, including a 2025 Senate report on PE's impact on Prospect and Lifepoint Health. Eleven state legislatures have passed laws increasing oversight of PE deals in healthcare.
Ownership is concentrated among a small group of investors. Apollo Global Management, which owns Lifepoint Health and ScionHealth, controls 200 U.S. facilities, and Welsh, Carson, Anderson & Stowe owns 124. The tracker also found that nearly a quarter of PE-owned facilities are rehabilitation centers, 22.6% are long-term acute care hospitals, and 23.4% are non-specialty hospitals. Around 23% of PE-owned hospitals are held through joint ventures with nonprofit health systems, which PESP notes could allow PE-backed organizations to sidestep regulations designed to protect patient care.
Quality data remains limited. PESP obtained ratings for only 17% of PE-owned hospitals in its tracker, and most of those scored three stars or less, compared with roughly four to five stars for non-PE facilities. Research on outcomes is mixed: a 2022 study found PE affiliation did not affect cost or quality for patients with myocardial infarction, while a 2023 study linked PE-owned hospitals to higher fall and infection rates. PE ownership has also been associated with the bankruptcies of Steward Health Care and Prospect Medical Holdings and with closures at other facilities.
Regulatory scrutiny is increasing. PESP says hospital ownership is lightly regulated, which makes PE holdings difficult to track. Following the Steward and Prospect bankruptcies, bipartisan action has followed, including a 2025 Senate report on PE's impact on Prospect and Lifepoint Health. Eleven state legislatures have passed laws increasing oversight of PE deals in healthcare.
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