The Senators say private equity is to blame for problems vulnerable patients experience
of ConsumerAffairsU.S. Senators Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.) have written to Health and Human Services (HHS) Secretary Xavier Becerra, urging the department to take stronger action to protect patients from the harmful effects of private equity involvement in health care.
The senators expressed concern over the growing influence of private equity in the sector, particularly highlighting its negative impact on vulnerable populations, including wheelchair users.
The senators saidthe wheelchair supply market is currently dominated by two private equity-owned companiesNational Seating and Mobility (NSM) and Numotionwhich they said have failed to provide adequate and timely repair services.
For the approximately 5.5 million wheelchair users in the U.S., repair delays of several weeks have become the norm, leaving many people stuck at home and at risk of further harm.
Surprise medical billing
Private equitys role in health care has worsened issues like surprise medical billing, insufficient staffing and training, and a lack of oversight and accountability, the senators wrote. We commend HHS for making private equity ownership in nursing homes more transparent, but we remain deeply concerned about its growing influence in other areas of health care.
Industry data shows that 60-82% of the total delays in wheelchair repairs stem from the industry's failure to provide timely in-home assessments and repairs, even after prior authorizations and parts have been secured.
Private equity firms are driven by a business model that prioritizes profits from selling new wheelchairs over investing in repair services. While companies make significant profits from selling modern wheelchairs, they often lose money on repairs.
The senators argued that this dynamic in the wheelchair industry exemplifies the broader negative impact of private equity in health care, where anticompetitive practices have led to monopolies, declining care quality, and rising costs for patients.
HHS must do more to address the conflict between private equitys short-term profit goals and the well-being of our most vulnerable populations, the senators concluded.
They also praised the Biden administration for launching a cross-agency inquiry into the role of corporate greed in health care. Additionally, they requested that Secretary Becerra provide information on HHSs ability to address the harms caused by private equity in health care, and whether the department needs additional authority to take further action against private equity ownership in the sector.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-22 21:15:25
