Knowledge@Wharton July 22, 2024
Nursing home reforms could include helping elderly patients overcome information frictions, linking payments with performance, and strengthening ratings, according to Wharton research.
Aging America needs more investment in nursing homes, and private equity (PE) can be a worthwhile source. But a study by experts at Wharton and elsewhere revealed a mixed bag of patient outcomes.
The study found that PE-owned nursing homes tend to admit patients with lower health risk, likely because they are cheaper or more profitable to serve. At the same time, PE ownership of nursing homes triggers an 11% increase in mortality. Declines in measures of patient well-being, nurse staffing, and compliance with care standards help to explain the mortality effect, according to a paper titled “Owner...
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