Nursing Homes; Private Equity's Next Target
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Having wreaked havoc in housing and rental markets, private equity next has its eye on longterm care as the "silver tsunami" arrives.
In Ontario, the Conservative Government is proposing to force some hospital patients into longterm care not of their choosing. Usually there's a reason these places aren't desired...
When Private Equity Takes Over a Nursing Home
Yasmin Rafiei | August 25, 2022
...In the autumn of 2019, Atul Gupta, an economist at the University of Pennsylvania, ... when private-equity firms acquired nursing homes, deaths among residents increased by an average of ten per cent.
...when firms buy a home, they cut staff. ... At homes with fewer direct-care nurses, residents are bathed less. They fall more, because there are fewer hands to help them to the bathroom or into bed. They suffer more dehydration, malnutrition, and weight loss, and higher self-reported pain levels. They develop more pressure ulcers and a greater number of infections. They make more emergency-room visits, and they’re hospitalized more often...
Whereas staffing levels influence costs, occupancy rates often determine profits. Firms have an incentive to fill more beds. The problem is that they have little motivation to make those beds safe or clean...
the “silver tsunami"...will increase revenues in the United States’ nursing-home industry by twenty-five per cent in the next five years. Private-equity firms currently own only eleven per cent of facilities, as a federal report found. But about seventy per cent of the industry is now run for profit...
Biden acknowledged the issue in his State of the Union address earlier this year. “As Wall Street firms take over more nursing homes, quality in those homes has gone down and costs have gone up,” he said. “That ends on my watch.” A day prior, the White House had released a fact sheet detailing new reforms, including requirements for “adequate staffing,” greater accountability for “chain owners of substandard facilities,” and increased scrutiny of the “poorest performers.” ...
https://www.newyorker.com/news/dispatch/when-private-equity-takes-over-a-nursing...
In Ontario, the Conservative Government is proposing to force some hospital patients into longterm care not of their choosing. Usually there's a reason these places aren't desired...
When Private Equity Takes Over a Nursing Home
Yasmin Rafiei | August 25, 2022
...In the autumn of 2019, Atul Gupta, an economist at the University of Pennsylvania, ... when private-equity firms acquired nursing homes, deaths among residents increased by an average of ten per cent.
...when firms buy a home, they cut staff. ... At homes with fewer direct-care nurses, residents are bathed less. They fall more, because there are fewer hands to help them to the bathroom or into bed. They suffer more dehydration, malnutrition, and weight loss, and higher self-reported pain levels. They develop more pressure ulcers and a greater number of infections. They make more emergency-room visits, and they’re hospitalized more often...
Whereas staffing levels influence costs, occupancy rates often determine profits. Firms have an incentive to fill more beds. The problem is that they have little motivation to make those beds safe or clean...
the “silver tsunami"...will increase revenues in the United States’ nursing-home industry by twenty-five per cent in the next five years. Private-equity firms currently own only eleven per cent of facilities, as a federal report found. But about seventy per cent of the industry is now run for profit...
Biden acknowledged the issue in his State of the Union address earlier this year. “As Wall Street firms take over more nursing homes, quality in those homes has gone down and costs have gone up,” he said. “That ends on my watch.” A day prior, the White House had released a fact sheet detailing new reforms, including requirements for “adequate staffing,” greater accountability for “chain owners of substandard facilities,” and increased scrutiny of the “poorest performers.” ...
https://www.newyorker.com/news/dispatch/when-private-equity-takes-over-a-nursing...
