Nursing homes acquired by private equity companies saw an increase in emergency room visits and hospitalizations among long-stay residents and an uptick in Medicare costs, according to a new study from Weill Cornell Medicine investigators, Healthcare Finance reports. The findings, published in JAMA Health Forum, suggest that quality of care declined when private equity firms took over the facilities.
Private equity investment in nursing homes has soared in recent years, as part of $750 billion in healthcare deals between 2010 and 2019. An estimated 5% of nursing homes in the U.S. are owned by private equity firms, data showed. Read more.
