Patients for Profit

How Private Equity Hijacked Health Care

Profit Strategy: Psychiatric Facilities Prioritize Out-of-State Kids

KHN Original

Nearly all psychiatric residential treatment centers for children in South Carolina operate as for-profit businesses — some backed by private equity — and many prioritize out-of-state kids because it’s better for the bottom line. The scramble to secure treatment for children and teenagers has become so competitive that South Carolina will spend millions more each year as of April 1 to keep out-of-state patients from flooding the state’s treatment facilities.