Real Estate Investment Trusts (REITs) have grown in popularity as the managing or owning entity for Illinois nursing homes. The REIT purchases and manages the nursing home facility as an investment property, usually as part of a larger portfolio of other nursing homes and hospitals. Nursing home and healthcare REITs are considered profitable investments and regarded by some as a quality investment in today’s market. This raises a new question in the continuing debate about nursing homes and the struggle between profit margins and resident care. For residents, a financially-successful nursing may provide better care and attract better employees. However, Illinois nursing home residents have seen that profitability does not always guarantee quality resident care. Large chains like Alden Nursing Homes and ManorCare nursing homes, now part of the Carlyle Group, still have frequent complaints of nursing home abuse and neglect and often have nursing home abuse and neglect lawsuits filed against them despite the success of their business models.
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