Press Releases

Washington, D.C. – Congresswoman Mary Gay Scanlon (PA-05) this week joined Representative Jerrold Nadler (NY-12), Ranking Member of the House Judiciary Committee, Representatives Pramila Jayapal (WA-07), Chris Deluzio (PA-17), Becca Balint (VT-AL), and Summer Lee (PA-12), and Senator Peter Welch (D-VT), in leading 41 of their colleagues on a letter to the U.S. Department of Justice (DOJ), U.S. Federal Trade Commission (FTC), and the U.S. Department of Health and Human Services (HHS) responding to a public inquiry into how private equity has impacted health care quality and costs. 

The lawmakers wrote: “Private equity firms and other corporate owners are increasingly involved in healthcare system transactions, and, at times, those transactions may lead to a maximizing of profits at the expense of quality care. The cross-government inquiry seeks to understand how certain healthcare market transactions may increase consolidation and generate profits for firms while threatening patients’ health, workers’ safety, quality of care, and affordable healthcare for patients and taxpayers. 

“Research has shown that competition in healthcare provider and payer markets promote higher quality, lower cost healthcare, greater access to care, increased innovation, higher wages, and better benefits for healthcare workers,” continued the lawmakers. 

The lawmakers also urged the agencies to explore immediate action: “We encourage your agencies to explore ways to immediately provide consumers, health providers, state and local agencies, and the public more information about the funding and ownership structures of healthcare service centers. We believe increased transparency of ownership will provide greater insight into healthcare provider consolidation and the impact it has on healthcare costs, quality of care, and worker conditions.” 

Find the full letter and list of cosigners here. 

In addition to the bicameral letter, Congresswoman Scanlon sent an additional letter highlighting the negative impacts of private equity ownership on Crozer Health and Hahnemann Hospital. Find Rep. Scanlon’s letter here. 

“From roll ups of local physician practices to large hospital mergers, consolidation and the corporatization of medicine has been bad for patients, doctors, nurses, and vulnerable communities," Rep. Scanlon wrote. "Over the past six years, multiple hospitals in my district and in the Philadelphia region have closed due to mismanagement and profit-taking by private equity firms."

The letter goes on to list the challenges faced by patients and medical staff following the closures of two of Crozer’s hospitals, and Hahnemann’s closure during the COVID-19 pandemic.

These letters respond to a Request for Information by the DOJ, FTC, and HHS on deals conducted by health systems, private payers, private equity funds, and other alternative asset managers that involve health care providers, facilities, or ancillary products or services as part of a cross-government investigation into health care markets. While the deadline for public comment has passed, the agencies have posted all comments on regulations.gov and can be read here.  

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