University of Chicago Researchers Say Privately Invested Nursing Homes Have Increased Death Rates Among Residents
Researchers at the University of Chicago, Penn, and NYU have been busy studying Medicare data covering more than 18,000 nursing home facilities nationwide. Their review includes about 1,700 facilities that were bought through private equity from 2000 to 2017. Total private equity investment in U.S. nursing homes went from $5 billion in 2000 to more than $100 billion in 2018.
The findings, published in a new working paper by the National Bureau of Economic Research, showed that when private equity firms acquire nursing homes, about 1,000 more resident deaths occur every year, bringing the risk of patient mortality to 10% more than the overall average.