Private equity maximized profits while sick children were neglected
A nursing company controlled by private equity firms left a trail of injury reports and seven child deaths last year as it pushed to maximize its profits, Bloomberg News reports, citing inspection reports, internal documents and interviews from former employees.
The big picture: "Home health care is considered an especially promising private-equity investment because it can save on expensive hospital stays, while generating revenue for years," according to Bloomberg.
The company, Aveanna Healthcare, is controlled by private equity firms Bain Capital LP and J.H. Whitney Capital Partners LLC.
- Aveanna had an abundance of violations in some of its biggest markets.
- Its vetting process had failed background checks, face-to-face interviews and reference checks, per Bloomberg.
- More than 12 former employees said they felt pressured to meet financial goals, which jeopardized the quality of care for children.
The other side: Aveanna said deaths were rare and cited surveys of thousands of patient families that said 97% were satisfied with their care.