For-profit corporations own 70% of nursing homes. Most place profit over patients. Oversight of the nation’s 15,000-plus nursing homes is “in crisis,” with facilities long overdue for routine inspections despite increased complaints of abuse and neglect.
Last month, the Attorneys General of 18 different states sent a letter in support of a proposed rule that would require the disclosure of ownership information. The Proposed Rule would apply to Medicare skilled nursing facilities (SNFs) and Medicaid nursing facilities (collectively “Nursing Facilities”). Many owned by shell companies fronting for private equity investors and real estate investment trusts.
Under the Proposed Rule, Nursing Facilities would have to disclose:
The name, title, and period of service of each member of the governing body;
The name, title, and period of service of officer, director, member, partner, trustee, or managing employee of the Nursing Facility.
Each person or entity who is an additional disclosable party of the Nursing Facility.
“Additional disclosable party” is “any person or entity who: (1) exercises operational, financial, or managerial control over the facility or a part thereof, or provides policies or procedures for any of the operations of the facility, or provides financial or cash management services to the facility; (2) leases or subleases real property to the facility, or owns a whole or part interest equal to or exceeding 5 percent of the total value of such real property; or (3) provides management or administrative services, management or clinical consulting services, or accounting or financial services to the facility.”
The organizational structure of each additional disclosable party and a description of the relationship.
Additionally, Form CMS-855A will require owning and managing entities to disclose private equity or a real estate investment trust.
CMS will make the information publicly available.