In recent years, there have been troubling reports of the effect of private equity companies getting into the health care sector. That includes buying hospitals, nursing homes and veterinary practices.
Because private equity professionals are typically interested in getting the cost of doing business down so they can increase profits, there has been considerable concern over how much private equity ownership affects the health and safety of those who rely on these facilities.
Research has found that hospitals purchased by private equity firms show a rise in preventable adverse events and emergency room fatalities, for example. These have largely been blamed on staff cuts in an industry where understaffing is already a serious issue.
The rise in private equity ownership of nursing homes has been so significant that there are some areas of the country where people have no choice but to use a facility owned by a private equity firm.
What have researchers found?
One study of nursing homes in another state found that private equity-owned facilities showed unfavorable results compared to those not owned by private equity firms. For example, they had:
- Significantly lower overall performance ratings
- Lower nurse staffing ratings
- Worse inspection results
- More citations for abuse
Researchers noted, “Multiple studies confirm the harmful effects that private equity ownership has on nursing homes, and the increased risk placed on residents and workers.”
How can families keep their loved ones safe?
Oftentimes, the real owner of a nursing home or any medical facility isn’t easy to determine. Some research is required.
What’s easier to determine is how particular nursing homes rank in multiple areas involving health, safety, comfort, staffing and performance. It’s always wise to look at the most recent data and note how recent it is.
Certainly, anyone who believes a loved one has suffered neglect or abuse should address the problem immediately with the facility’s management. It’s also wise to get experienced legal guidance as early as possible to determine the best way forward.