The effects of private equity ownership in U.S. nursing homes quality and financial performance: A systematic review

The effects of private equity ownership in U.S. nursing homes quality and financial performance: A systematic review
Health Policy; by Gregory N. Orewa, Aizhan Karabukayeva, Rohit Pradhan, Itopa Jimoh, Robert Weech-Maldonado; 7/25
Private equity (PE) investment in U.S. nursing homes has increased significantly over the past two decades. The emergence of this novel ownership model has prompted concerns regarding its effects on nursing home performance, especially quality... Across studies, PE ownership was linked to higher number of deficiencies, increased hospitalization rates, and higher mortality, although some improvements in care processes were noted. Financial outcomes showed initial financial gains but long-term challenges, primarily due to high debt loads... Findings suggest that PE strategies may prioritize short-term profitability, which may compromise quality of care in some instances. These findings highlight the need for financial transparency, and reimbursement models that incentivize long-term quality.