Nursing Homes Owned By Private Equity Groups Have Bad Patient Outcomes
Sometimes it takes a study to prove what we already suspected. Private equity groups have been buying up nursing homes. They do it of course because they believe it is a good investment. That's what private equity groups do. They don't buy nursing homes because they believe in advocating for the elderly, improving patient care, or any other altruistic reason. They buy them to make money.
What happens when a private equity group buys a nursing home? A recent study shows the residents get sicker. A study by the Weill Cornell Medical College found that they are 11% more likely to go to the emergency room and almost 9% more likely to end up in the hospital. Furthermore, and not surprisingly, Medicare costs sky rocketed for their patients.
The implications for this study are numerous. Patients must be placed before profits. Licensing agencies need to investigate the corners that are being cut that are harming patients. When a patient is harmed legal action should be considered for the patient and equally importantly to protect other patients. Private equity groups will pay attention when they realize poor care will result in costly legal action.
For more information, here is a link to a recent article describing the problem: https://www.fiercehealthcare.com/finance/private-equity-acquired-nursing-homes-have-worse-resident-outcomes-higher-medicare-costs