All posts tagged: longtime financial journalists

What Private Equity Does to Hospitals

What Private Equity Does to Hospitals

Riverton, Wyoming, a city of about 11,000 people at the feet of the Wind River mountain range, seems far away from the world of Big Finance. Yet like so much of America, Riverton has become well acquainted with the business that most epitomizes today’s Wall Street: private equity. In 2018, the local hospital, SageWest, was purchased by Apollo Global Management as part of the giant private-equity firm’s $5.6 billion deal to buy a chain of hospitals called LifePoint Health. Even before Apollo got involved, LifePoint had merged Riverton’s small hospital with the hospital half an hour away in Lander, the county seat. Vivian Watkins, a Riverton resident who once served as Wyoming’s economic-development director, told us that the idea sounded viable—at first. “They told us the new trend in hospitals is ‘centers of excellence,’ so you’ll have maternity care in one place and, say, orthopedics in another,” she said. But in the Apollo era, Watkins and other Riverton residents concluded that, instead of dividing specialties between the two hospitals and beefing up the ones remaining …