Private equity in NM hospitals is leading to a healthcare provider shortage:

[applegrove]

Think New Mexico isn’t fighting for patients, they’re fighting for private equity.

There’s a doctor shortage because Wall Street buys up community hospitals, guts staff, and turns ERs into cash cows. Patients wait 16 hours for care while profits soar.

Private equity is strip-mining hospitals.

— Christopher Webb (@cwebbonline.com) 2025-08-27T22:52:48.873Z

[Silent Type]

1. Sad fact is communities sell hospitals because they can't raise funds. PE gives them a small

chance — more a hope — to improve circumstances. Occasionally it works.

The real issue is lack of sustainable reimbursement— because payers are cheap and/or there just isn’t enough local demand for care — for the community to continue funding financial loses.

It’s a really difficult situation, far beyond just blaming PE. Turning to PE is the symptom, rather than the problem.

[applegrove]

2. Private Equity has been selling efficiency vs. quality. The CEO

gets a good bonus or the head(s) of the PE get to keep every profit over 8% per year so there is great incentive to run the business, or entity into the ground so there is more profit for them in the short term. The investors get the first 8%. Somehow we managed to live happily as a society before workers were told they were not allowed bathroom breaks till lunch, so they couldn't have a coffee in the morning. It was the 20th Century and most people did better than the centuries before. It is lack of quality of life that is going on too for workers as well as the customers/clients. Everyone's quality of life goes down as things are made more efficient. Except the ceos, investors in the private equity and the head of the PE.

[Silent Type]

3. Just like the choice Toyz-R-Us had -- Shut down immediately because you have no source of funding after downgrade

and fire everyone or turn to PE which is your last source of funding in hopes of surviving. They turned to PE and survived a few more years.

If community ain’t supporting a hospital, they have same choice unless they can find someone to improve situation.

Not saying I like it, but it’s the way it is.

[applegrove]

4. The hospitals are failing because the most efficient way to treat people is universal healthcare.

That means the costs are less for the local state. Universal healthcare is both more efficient and covers more people than private healthcare. If you cut out the market, outcomes are better.

[Silent Type]

5. Totally agree, but we ain't close to universal health. Hence, PE is a lifeline in some cases.

[applegrove]

6. Nope. Increase taxes. Don't act like there shouldn't be

a VAT tax or greater income tax. It is all manageable. The EU does it. Canada does. Republicans like PE in hospitals because it will result in more people dying and so not Medicare or social security beneficiaries so much. Again. Efficiency in government. Kill off many. Fewer people to vote for a middle class way of life.

[Silent Type]

7. All for it. When do you think that might happen? Until then, PE is last option, like a loan shark.