Private investment into the health care sector may bring innovation, but it's also led to revenue-seeking behaviors at the expense of patients, three employees of The Commonwealth Fund argue in Harvard Business Review.

By the numbers: There were nearly 800 private equity health care deals in 2018, with a total value of more than $100 billion.

Surprise medical bills have recently put private equity in the spotlight.

  • Many of these bills are generated by specialties commonly backed by private equity, like emergency room care, anesthesiology and radiology.
  • One of the biggest political forces lobbying against Congress' effort to stop surprise medical bills is a group called Doctor Patient Unity, which has spent more than $28 million on ads and is primarily funded by private-equity-backed companies.

The big picture: Physician practices are a common target for private equity firms.

  • These investments may give small practices an alternative to being bought by hospitals, "but, at least in some cases, the investors' strategy appears to be to increase revenues by price-gouging patients when they are most vulnerable," the authors write.
  • Freestanding emerging rooms are also commonly owned by private equity. These have come under fire for their high prices, which can be 22 times higher than what a physician's office charges for the same care.

The bottom line: Price-gouging patients may backfire. "Consumer outrage leads quickly to government intervention," the authors conclude.

Go deeper: Private equity's other stake in surprise medical bills

Go deeper

Updated 35 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 12:30 a.m. ET: 33,880,896 — Total deaths: 1,012,964 — Total recoveries: 23,551,663Map.
  2. U.S.: Total confirmed cases as of 12:30 a.m. ET: 7,232,823 — Total deaths: 206,887 — Total recoveries: 2,840,688 — Total tests: 103,939,667Map.
  3. Education: School-aged children now make up 10% of all U.S COVID-19 cases.
  4. Health: Moderna says its coronavirus vaccine won't be ready until 2021
  5. Travel: CDC: 3,689 COVID-19 or coronavirus-like cases found on cruise ships in U.S. waters — Airlines begin mass layoffs while clinging to hope for federal aid
  6. Business: Real-time data show economy's rebound slowing but still going.
  7. Sports: Steelers-Titans NFL game delayed after coronavirus outbreak.

CDC: 3,689 COVID-19 or coronavirus-like cases found on cruise ships in U.S.

Cruise Ships docked in April at the port at Marina Long Beach due to a no-sail order in Long Beach, in California. Photo: Apu Gomes/AFP via Getty Images

There have been at least 3,689 COVID-19 or coronavirus-like illness cases on cruise ships in U.S. waters, "in addition to at least 41 reported deaths," the Centers for Disease Control and Prevention said late Wednesday.

Driving the news: The CDC released the data from the period of March 1 through Sept. 29 in an emailed statement confirming the extension of a No Sail Order for cruise ships through Oct. 31, as first reported by Axios' Jonathan Swan on Tuesday in his article revealing CDC director Robert Redfield was overruled in a push to extend the order into 2021.

Ina Fried, author of Login
4 hours ago - Technology

Facebook removes Trump ads tying refugees to COVID-19

Photo Illustration: Aïda Amer/Axios. Photo: Saul Loeb/AFP via Getty Images

Facebook said Wednesday that it was removing a series of ads from President Trump's campaign that linked American acceptance of refugees with increased coronavirus risk, a connection Facebook says is without merit.

Why it matters: The ads were pulled after they received thousands of impressions and are a sign that the Trump campaign continues to test the limits of social media rules on false information.

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