CMS’ New Transparency Rule Can Help ‘Weed Out a Few Bad Actors’ but Won’t Impact Deals Much, Other Factors at Play

CMS’ New Transparency Rule Can Help ‘Weed Out a Few Bad Actors’ but Won’t Impact Deals Much, Other Factors at Play
Skilled Nursing News
December 6, 2023
Nursing home ownership changes have largely been embraced by the industry and will have little impact on deal activity, with the new transparency rule from the Centers for Medicare & Medicaid Services having very little impact on the sector. Instead, the new rule will force nursing homes to report ownership details during critical junctures like Medicare or Medicaid applications and recertification, according to executive managing director of VIUM Capital, Steven W. Kennedy. And if anything, the new transparency rule will eliminate any bad actors on the real estate and operating side because these might cause them “discomfort,” and that’s certainly better for the industry, he said. “Every industry no matter where you are has some bad actors,” he said. “I think in general, skilled nursing has very few bad apples, but if they’re out there, this can help weed them out.”