Private-equity-acquired nursing homes have worse resident outcomes, higher Medicare costs, study finds

Fierce Health Payers November 24, 2021
Dave Muoio

Long-stay residents of nursing homes recently acquired by private equity firms are more likely to have ambulatory care-sensitive emergency department visits and hospitalizations compared to those staying at non-private equity for-profit nursing homes, according to a recently published national cohort analysis.

Residents at PE-acquired nursing homes also generate higher Medicare costs, the analysis found.

Across a sample of nearly 10,000 for-profit nursing homes and more than 250,000 residents, Weill Cornell Medical College researchers found mean quarterly rates of ambulatory care sensitive emergency department visits and hospitalizations to be 14.1% and 17.3%, respectively.

However, among those staying at 302 homes acquired by private equity between 2013 and 2017, the researchers saw an 11.1% relative increase in these emergency department visits and...

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