Studies and investigations have shown that private equity owned nursing home facilities are “tunneling funds” to hide profits as fees to related entities or affiliated companies. These companies are common ownership or common control. Facilities claim they are broke but they are actually pocketing the money towards real estate and management fees. The taxpayer money

Nursing home leadership is needed for quality of care.  Administrators are often financially restricted because tunneling to related entities making their job difficult. Turnover is a major problem in the industry. High administrator turnover rates place the facility at risk for mismanagement and poor performance in violation of 42 CFR 483. 70. Studies have found