RevCycle Intelligence March 12, 2020
Private equity in healthcare is increasing, but a new paper exploring its role in nursing homes shows a negative impact on quality of care.
A working paper from researchers at the University of Pennsylvania and New York University is raising questions about the benefits of private equity in healthcare.
The paper recently published in SSRN examined the effects of private equity buyouts in a large section of healthcare: nursing homes. The study used data from CMS and Pitchbook Inc., a leading market intelligence firm, to analyze 119 deals involving 1,667 nursing homes since 2004.
Researchers found that private equity buyouts resulted in significantly lower quality of care, as measured by CMS-generated Five Star ratings and hospital readmission rates, as well...