Private Equity Firms Reap Payouts After Hospital Chain Received $1.6 Billion in CARES Act Support

The report details how Apollo Global Management leveraged LifePoint Health to generate profits and expand its healthcare footprint while the company received $1.64 billion in CARES Act support. It highlights a $1.6 billion profit made by Apollo selling LifePoint from one of its funds to another and the acquisition of Kindred Healthcare, which created the largest private-equity-owned healthcare company in the US. The document argues that these financial maneuvers prioritize private equity returns over patient care, noting that LifePoint hospitals lag national quality averages and faced critical ICU capacity shortages during COVID-19 surges.

• LifePoint Health received $1.64 billion in federal COVID-19 stimulus aid as of July 2021, which included nearly $650 million in grants that do not require repayment.
• In April 2021, Apollo Global Management realized a profit of over $1.6 billion by selling LifePoint from Apollo Investment Fund VIII to Apollo Investment Fund IX for $2.6 billion.
• LifePoint's June 2021 announcement to acquire Kindred Healthcare, owned by TPG Capital and Welsh, Carson, Anderson & Stowe (WCAS), would create the largest private-equity-owned healthcare company in the US, employing 77,000 people across 34 states.
• LifePoint hospitals demonstrate lower quality of care than the national average, with an average CMS star rating of 2.9 compared to 3.2 nationally; 35.3% of LifePoint hospitals have a 2-star rating or below, while the national figure is 26.6%.
• Despite receiving federal aid, LifePoint facilities faced severe operational strain during the pandemic; for example, Bolivar Medical Center in Mississippi reported zero ICU bed capacity the week of August 16, 2021, and two Alabama hospitals were at or over capacity the previous week.

APA

O’Grady, E. (2021). Private Equity Firms Reap Payouts After Hospital Chain Received $1.6 Billion in CARES Act Support. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2021/09/Apollo_Kindred_Lifepoint_PESP_September-2021.pdf

Chicago

O’Grady, Eileen. Private Equity Firms Reap Payouts After Hospital Chain Received $1.6 Billion in CARES Act Support. Private Equity Stakeholder Project, 2021. https://pestakeholder.org/wp-content/uploads/2021/09/Apollo_Kindred_Lifepoint_PESP_September-2021.pdf.

Wikipedia

{{cite report |last1=O’Grady |first1=Eileen |title=Private Equity Firms Reap Payouts After Hospital Chain Received $1.6 Billion in CARES Act Support |publisher=Private Equity Stakeholder Project |date=September 2021 |url=https://pestakeholder.org/wp-content/uploads/2021/09/Apollo_Kindred_Lifepoint_PESP_September-2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ogrady2021private, author = {O’Grady, Eileen}, title = {{Private Equity Firms Reap Payouts After Hospital Chain Received \$1.6 Billion in CARES Act Support}}, institution = {Private Equity Stakeholder Project}, year = {2021}, month = sep, url = {https://pestakeholder.org/wp-content/uploads/2021/09/Apollo_Kindred_Lifepoint_PESP_September-2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }