Abstract 3570: Impact of private equity ownership on quality of cancer care in U.S. hospitals

Introduction: This study examined the potential impact of private equity (PE) acquisitions on patient satisfaction in U.S. hospitals with cancer care centers. Given the growing trend of PE involvement in healthcare, we hypothesized that ownership changes could correlate with measurable declines in perceived quality of care. Methods: From a national dataset of 5,395 Medicare-participating hospitals, we filtered to 2,405 facilities that met criteria for dedicated oncology services and comprehensive cancer care, including defined treatment facilities and national program affiliations. Using Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) survey data (2016-2023), which provides patient satisfaction scores on a 1-to-5-star scale, we analyzed satisfaction ratings for 118 hospitals acquired by PE to identify changes pre- and post-acquisition. Pitchbook provided insights into deal type, deal frequency, and financing status. Julius AI was utilized for analysis, with particular attention to deal structures and rating trends. Results: Over half of the hospitals studied (51.7%) experienced declines in satisfaction ratings post-acquisition, with an average decrease of 0.061 stars. Bankruptcy and debt-related deals corresponded with more substantial declines (-0.318 and -0.095 stars, respectively), suggesting that financial pressures may directly or indirectly impact patient experiences. Comparatively, single-deal hospitals showed a mean decrease of 0.061 stars, with 56.7% reporting declines, versus 44.9% for multiple-deal hospitals, which showed a more stable rating profile. Although a weak negative correlation (-0.101) existed between multiple deals and rating stability, hospitals with three or more deals showed minimal fluctuation, possibly reflecting stronger organizational adaptation over time. Conclusion: This analysis reveals a consistent trend: patient satisfaction ratings tend to decrease in a considerable portion of PE-owned hospitals, with variations based on deal type and structure. The findings underscore the need for ongoing evaluation of PE ownership models in healthcare, particularly as financial motivations intersect with patient-centered care priorities. These preliminary trends merit deeper investigation into the mechanisms through which PE acquisitions may influence hospital service quality, especially in oncology-focused settings where patient care and continuity are critical. This abstract was prepared with the assistance of generative AI (Julius AI) for data analysis. Citation Format: Megan Worthington, Ruth Carlos. Impact of private equity ownership on quality of cancer care in U.S. hospitals [abstract]. In: Proceedings of the American Association for Cancer Research Annual Meeting 2025; Part 1 (Regular Abstracts); 2025 Apr 25-30; Chicago, IL. Philadelphia (PA): AACR; Cancer Res 2025;85(8_Suppl_1):Abstract nr 3570.