Senate Investigates Private Equity's Influence on Health Care

Senators Sheldon Whitehouse and Charles Grassley have launched an investigation into the impact of private equity on the U.S. healthcare system. The inquiry comes after a CBS News investigation revealed how private equity firms, such as Prospect Medical Holdings and Medical Properties Trust, have siphoned hundreds of millions of dollars from hospital operations, leading to closures and compromised patient care. The senators are seeking information from these firms and Leonard Green and Partners, another private equity giant, to understand the negative outcomes for patients resulting from private equity involvement in healthcare. State regulators have also taken steps to rein in Prospect Medical Holdings in states where it operates hospitals.