Hospital chains owned by three private equity firms received a combined $2.5 billion in federal grants and loans to offset financial damage linked to the COVID-19 pandemic, according to Bloomberg.
Brentwood, Tenn.-based LifePoint Health, owned by private equity firm Apollo Global Management, received $941 million in Medicare loans and $535 million in federal grants, which do not have to be repaid. A LifePoint spokesperson told Bloomberg that the company needed the federal relief aid to help cover higher expenses and lost revenue tied to the pandemic.
Los Angeles-based Prospect Medical Holdings, owned by Leonard Green & Partners, received $234 million in loans and $141 million in federal grants, according to analysis by Bloomberg.
Dallas-based Steward Health Care, financed by Cerberus Capital Management, got $427 million in loans and $248 million in grants. In May, Steward transferred ownership to a group of physicians, according to the report.
Though the hospital chains qualified for the relief aid, some lawmakers have raised concerns about private equity-backed healthcare companies receiving federal COVID-19 relief aid.
Access the full Bloomberg article here.