For-profit hospices saw higher spending, longer lengths of stay and increased rates of live discharge following a private equity (PE) purchase, according to a study published in Health Affairs on Nov. 2, 2026. 
 
The study reviewed fee-for-service Medicare claims from over 1,000 for-profit hospices, 191 of which were acquired by a PE firm between 2018 and 2022.  
 
PE-owned agencies saw a 5.9% increase in baseline Medicare spending, or $993 per hospice encounter. Other notable changes include that their length of stay extended by an average of 6.3 days, and their proportion of beneficiaries with dementia increased. 
 
The study authors note that these changes may be due to agencies selecting beneficiaries who required less intensive care in order to maximize profits.