Why It Matters Who Owns a Nursing Home

In a recent post, we discussed the effect that the increase in private equity firms’ ownership of hospitals has had on patients. Specifically, we talked about how research has shown that emergency departments in hospitals owned by these firms have a higher patient fatality rate than similar facilities not under private equity ownership.

The rise in these and other adverse events is largely blamed on the fact that these firms often enact aggressive cost-cutting measures – including reducing staff levels. Understaffing is already a serious problem in health care settings.

Private equity firms have also set their sights on nursing homes. The increase in these purchases has become so significant that in some areas, people can’t avoid a private equity-owned nursing home. 

Does private equity ownership affect the quality of care?

A recent study of nursing homes in another state found that private equity-owned facilities fared poorly compared to similar facilities not owned by private equity firms in multiple ways. These include:

• Significantly lower overall performance ratings
• Lower ratings for nurse staffing
• More citations for abuse
• Worse inspection results

Researchers stated, “Multiple studies confirm the harmful effects that private equity ownership has on nursing homes, and the increased risk placed on residents and workers.” 

Unfortunately, it doesn’t look like the federal government is going to take any meaningful action. According to the study, under the first Trump administration, federal protocols were revised “to discourage regulators from levying fines against nursing homes” even when negligence, abuse or other wrongdoing resulted in residents’ deaths.

What can families do?

Families considering a nursing home or other care facility for a loved one need to carefully research their options. While it’s not always easy to determine the true ownership of a facility, there is generally plenty of reliable data available on them and how they rank in various areas, like those listed above.

Anyone who is concerned about neglect or abuse of a loved one should immediately talk to the management of the facility. If that doesn’t yield results or if physical, psychological or other harm has already been done, it’s wise to get experienced legal guidance.