Elizabeth Warren's bill would jail private equity execs for up to 6 years if hospital 'looting' kills a patient

“Looting hospitals and nursing homes is basically a feature of private equity’s playbook,” Warren said. “It’s about time that corporate executives face real legal consequences when they put patients and communities at risk.”

The bill would impose up to six years in prison for executives who “loot health care entities like nursing homes and hospitals, if that looting results in a patient’s death.”

The broader private equity crisis

Over the five years preceding 2021 alone, private equity fund assets grew by more than 116%, according to the SEC Chair’s 2021 congressional testimony — a trajectory the Warren press release notes has continued, with total private equity assets reaching $8.2 trillion by 2023.

The bill arrives at a moment of mounting pressure on the private equity industry. Firms are holding a record number of unsold companies — more than 13,500 across U.S. portfolios, including 1,536 healthcare companies, according to PitchBook data cited by the Guardian. Many have been held far longer than the planned exit window as persistently high interest rates, steep buyout prices and weak returns have made profitable sales difficult.

“Eventually, the companies that have accumulated this much debt are going to collapse,” Audrey Stienon of Open Markets, an anti-monopoly think tank, told the Guardian. The concern is that many of those companies provide essential services. “When they go down, either you need to bail them out, or you need to find someone to save them or else you’re just stuck with fewer options for consumers down the line.”

Private equity-backed companies accounted for most major U.S. corporate bankruptcies in 2025 and the first half of 2026, according to industry watchdog the Private Equity Stakeholder Project. The group also notes more than 60% of large manufacturing bankruptcies last year were backed by private equity.

Healthcare has been particularly vulnerable: over the past few years, private equity bought thousands of healthcare facilities, including rural hospitals, non-profit hospice operations and small-town dental offices, the Guardian reports.

The evidence behind the bill

Concerns driving Warren’s legislation are backed by research. A study analyzing more than 4.1 million Medicare hospitalizations across 11 years found that hospitals acquired by private equity experienced around 25% more hospital-acquired adverse events compared to others.

For example, central line-associated bloodstream infections rose by about 38%, patient falls increased by more than 27% and surgical site infections doubled (while declining at other hospitals).

The study also found that private equity-acquired hospitals were more likely to transfer patients to other facilities or skilled nursing homes — a pattern the researchers suggest may reflect the impact of earlier discharges — these hospitals had shorter lengths of stay, and patients were slightly less likely to die in-hospital but no less likely to die within 30 days.

Another study found that patient care experience worsened after private equity acquisition, particularly in patient-reported staff responsiveness. The percentage of patients rating their hospital 9 or 10 out of 10 fell at private equity-acquired hospitals relative to others by 2.4 percentage points — a gap that widened to 5.2 percentage points by the third year after acquisition.

What the bill would change

Beyond the criminal penalties, Warren’s bill would empower state attorneys general to take back all compensation paid to private equity executives within a decade surrounding the period of financial distress — including salaries, fees and dividends extracted before the collapse — plus an associated civil penalty of up to five times the recouped amount.

The bill would also require healthcare entities receiving federal funding to disclose ownership changes, investor fees and debt-to-earnings ratios — or be fined up to $5 million, according to Bloomberg Law, which also notes the bill would prevent real estate investment trusts working in sale-leaseback deals from receiving federal health care program payments.