McKnight’s reported in an opinion piece that appeared in medical news outlet STAT. Dr. Haider Warraich, M.D. admitted what everyone in the industry knows:
“Private equity investment fundamentally changes nursing homes.”
Dr. Warraich asserts that for-profit nursing homes place residents at higher risk of death and are a poor deal for elders overall. The lack of oversight has reduced quality of care even as Medicare reimbursement and profits rise. Warraich referenced a review of six studies conducted during the pandemic. These studies show that residing in a for-profit nursing home increases the risk of COVID-19 infection or death.
In another, long-term study, researchers discovered that private equity ownership increases short-term mortality by 10%. Researchers estimate this increase led to the loss of approximately 21,000 lives over a two-decade study period. The doctor recommended more scrutiny by lawmakers, and possibly eliminating immunity provisions to help increase transparency and accountability in for-profit facilities.
More details and insight on the issue can be found here.