Bloomberg Law
April 6, 2021, 9:36 AM

Investor-Owned Nursing Homes Draw Scrutiny as Deals Flourish

Tony Pugh
Tony Pugh
Reporter

Congressional Democrats are using their new majority to resurrect an old grievance: whether private equity ownership of nursing homes—and their investors’ laser focus on profits—are hurting the quality of care.

Medicare patients were 10% more likely to die at private-equity owned nursing homes in the first 90 days, implying more than 20,000 Medicare patient deaths “due to PE ownership” over a 17-year study period, according to a February research paper published by the National Bureau of Economic Research (NBER).

Additional scrutiny could complicate the nursing home industry’s push for an extra $15 billion a year in Medicaid funding to shore ...

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