Florida
Concerns Rise in Pensacola Over Private Equity’s Role in Local Healthcare Nonprofits
It wasn’t billed as a takeover. The nonprofit hospice where Washington state nurse Milli Palmer has worked for nearly two decades announced in October 2024 that it was entering a “joint venture” with Compassus, a private equity-backed home health company.…
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Key points
- A Washington state hospice’s joint venture with a private equity firm has raised concerns about patient care.
- Local healthcare providers in Pensacola may face similar pressures if private equity expands its role in nonprofits.
- Policymakers in Florida should consider regulations to protect community healthcare needs.
NewsWK — Residents of Pensacola and surrounding areas may find themselves affected by recent developments in the healthcare sector, particularly concerning the growing involvement of private equity firms in nonprofit healthcare organizations. A recent case in Washington state highlights how a nonprofit hospice, Providence, entered a joint venture with Compassus, a private equity-backed company, resulting in significant changes to staffing and patient care practices.
This partnership was intended to enhance the operational capacity of the hospice, but reports from employees indicate that it has led to increased demands on nursing staff, forcing them to see more patients in less time. Many nurses, including those who have dedicated years to their roles, have expressed that these pressures compromise the quality of care they can provide. “It has really limited our ability to make sure that patients are safe in their home,” stated nurse Milli Palmer.
The implications of such partnerships could be considerable for Pensacola residents, particularly as private equity involvement in healthcare continues to test state laws aimed at oversight. Local healthcare providers, including those in Escambia and Santa Rosa counties, may need to prepare for potential shifts in operational priorities that could arise from similar ventures. The community relies heavily on nonprofit healthcare services, and any changes to their structure or focus could impact patient care and access to essential services.
As the trend of joint ventures between nonprofits and private equity firms grows, policymakers in Florida and local officials will need to closely monitor these developments. Ensuring that community health needs remain the priority amidst financial motivations will be crucial for maintaining high standards of care in places like Baptist Health Care and Ascension Sacred Heart Hospital.
Furthermore, with at least seven states having enacted laws to regulate private equity’s role in healthcare, stakeholders in Pensacola should advocate for similar protections to ensure that local healthcare institutions prioritize patient welfare above profit margins.
This article was produced with the assistance of AI and reviewed by our editorial team.
Based on reporting by Anna Claire Vollers originally published by Stateline. Read the original story.
