Biden Administration Calls for Transparency in Nursing Home Ownership and Operation: Research reveals that for-profit and private equity ownership of nursing homes is connected with increased nursing home malpractice and wrongful death.

According to a USA Today article, the Biden administration has proposed a rule calling for nursing homes to reveal if they are owned and operated by private equity firms or real estate investment trusts. The rule calling for transparency of ownership, issued by the Centers for Medicare and Medicaid Services earlier this month, relates to the president’s intention to reform nursing homes.

The complex ownership of certain American nursing home chains can make it unclear who decision makers are and where taxpayer money goes, as well as whether or not nursing homes are profitable. Disclosure of ownership and financial information will directly inform future policies intended to decrease nursing home malpractice related to poor quality of care. But in the meantime, says U.S. Health Secretary Xavier Becerra, the information about ownership would be made public as a means of informing consumers. When and how this information will be shared has not yet been decided.

Becerra is quoted in the article as saying that quality of care in nursing homes continues to decrease while costs soar. He also noted that recent studies have shown that ownership has an impact on quality of care in nursing homes.

The White House has previously noted that residents of private equity-owned nursing facilities have a greater likelihood of experiencing serious negative outcomes related to nursing home malpractice, some which necessitate the involvement of a wrongful death attorney. The Biden administration has named the following as negative outcomes more likely for residents of private equity-owned nursing homes:

• More nursing home injuries and illnesses that require hospitalization
• Higher mortality rates
• Higher nursing home infection rates

Nursing homes could be required to give updated information regarding direct and indirect ownership by mid-year.

Fighting Elder Abuse, Nursing Home Malpractice, and Wrongful Death

As a nursing home malpractice and wrongful death attorney, Brian P. Murphy has years of experience holding Philadelphia/PA and NJ nursing homes responsible for nursing home abuse and neglect. Residents of Philadelphia/PA or NJ nursing homes should feel safe and secure and should expect the facilities in which they live to respect every right to which they are guaranteed under federal law.  Having practiced for years as a wrongful death attorney, Brian Murphy fearlessly confronts negligent nursing homes and steadfastly pursues the successful resolution of his clients’ cases. Should you find yourself needing to contact a nursing home malpractice and wrongful death attorney, call Brian Murphy today to discuss your legal options.

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Residents are Worse-Off at Private Equity-Owned Nursing Homes, Studies Show:

Citing recent studies, the White House recently declared that residents of private equity-owned nursing facilities have a greater likelihood of experiencing negative outcomes relating to nursing home injuries, nursing home neglect, and wrongful death.

Residents in nursing homes acquired by private equity tend to have “significantly worse outcomes,” the White House said in a fact sheet proposing sweeping changes in the nursing home industry. Issued on February 28, the fact sheet takes a hard look at the impact this kind of for-profit ownership has on the industry. Coming under the federal initiative of increasing transparency of nursing home owners and operators, the focus on private equity-owned nursing homes seeks to improve glaring deficits in care surrounding nursing home injuries, nursing home neglect, and wrongful death in nursing homes.

Residents are worse-off at private equity-owned nursing homes; referencing a range of recent research in the fact sheet, the Biden-Harris administration has outlined the following as the current negative outcomes for residents of private equity-owned nursing homes:

• Increased likelihood of hospital-worthy nursing home injuries and illnesses—Residents of private equity-owned homes are 11.1% more likely to have a preventable emergency room visit and are 8.7% more likely to be subjected to a preventable hospitalization than residents of non-private equity for-profit homes, says this JAMA Network study.
• Higher Medicare costs—The above JAMA Network study indicates that, although private equity-owned nursing homes often give the kind of poor quality care that amounts to nursing home neglect, they still lead to an increase in Medicare costs.
• Higher mortality rates—According to this NBER working paper, among the 18,000 nursing homes studied over a 17-year period, those owned by private equity investment showed a 10% higher rate of excess mortality for residents. Beyond this fact, private equity homes showed a 50% increase of antipsychotic drug prescriptions and a 3% decrease in hours for frontline nursing and increased taxpayer spending per resident of 11%, all of which points to an additional loss of 20,150 lives because of private equity ownership.
• Nursing Home Infection Rates that Exceed State Averages—This New Jersey case study of COVID-19 in private equity-owned nursing homes found that private equity-owned homes had COVID nursing home infection rates that were 30% higher than that state average. COVID deaths at these homes were 40% higher than the state average.

Noting that the trend for private-equity ownership has increased significantly over the past 20 years (with investments growing from $5 billion to over $100 billion between 2000-2018) and also declaring that the private equity model frequently puts profits before people, the White House expressed a desire that certain upcoming measures devised and implemented by the Department of Health and Human Services (HHS) will hold these nursing homes accountable for the care they provide.

Demanding High Quality Care for Your Loved One

Determining the quality and safety of the Philadelphia/PA or NJ nursing home where your loved one lives is essential. Meeting health and safety standards and to ensuring the physical, mental, and psycho/social well-being of their residents is a requirement to which Pennsylvania and New Jersey nursing homes must adhere. Should you have concerns about the quality of care in a Pennsylvania or New Jersey nursing home, or if you suspect neglect, abuse, or fraud has occurred at the Pennsylvania, Philadelphia, or New Jersey nursing home where your loved one lives, please contact nursing home abuse attorney Brian P. Murphy to discover your legal rights and options.

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