Skilled Nursing News November 21, 2021
Private equity acquisition of nursing homes is tied to increases in emergency room visits, hospitalizations and higher Medicare costs, according to a recently published JAMA Health Forum study.
The study found PE firm-owned nursing homes were 11.1% more likely to have an acute coronary syndrome (ACS) emergency department (ED) visit and 8.7% more likely to have an ACS hospitalization, compared to non-PE firm-owned for-profit nursing homes.
Total Medicare costs were 3.9% higher than their counterparts, the study said.
Such firms usually look to achieve annual returns of 20% or more, the study said, and the pressure to generate high short-term profits could lead to reduced staffing, services, supplies or equipment — in turn creating diminished quality of care.
Researchers in...
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