Nursing homes acquired by private equity firms have increased visits and hospitalizations to emergency rooms for long-term residents and increased Medicare costs, according to a new study by Weill Cornell Medicine investigators.The findings were published on November 19th. JAMA Health Forum, Suggests that the quality of care has declined when private equity firms took over the facility.
“Our findings are Private equity “Company-owned facilities provide low-quality long-term care,” said Dr. Mark Unlu, an associate professor of artificial health sciences at Weil Cornell Medicine. “These residents are ours. The most vulnerable in the medical system, ownership makes it difficult to identify facilities with private equity ownership that consumers may want to know. “
Private equity investment in nursing homes has skyrocketed in recent years as part of the $ 750 billion healthcare transaction from 2010 to 2019, according to the research team. An estimated 5% of US nursing homes are owned by private equity companies. This included Dr. Lawrence Casalino, Dr. Hyeyoung Jung, Dr. Robert Tyler Brown, and Dr. Zachary Mislinsky ’21, a graduate of Weil Cornell Medical College.
Due to the pressure to generate high short-term profits, private-equity-owned nursing homes can reduce personnel, services, equipment, or equipment. Quality of careDr. Unruh added that such companies are seeking more than 20% annual revenue.
Using a new national database developed by Dr. Brown for research, Weill Cornell researchers found 302 nursing homes acquired by private equity firms between 2013 and 2017, for a total of 9,632 long-term residents. I have identified.Investigators compared Resident Results at private equity-owned facilities with results of 9,562 residents in other commercial nursing homes, including 249,771 long-term residents during the study period.
As an indicator of quality of care, the team examined outpatient care-sensitive (ACS) visits and hospitalizations to the emergency room. These episodes, such as diabetes and complications of heart failure, can be significantly prevented by proper management of the condition.
Investigators found that residents of private-equity-owned facilities were 11% more likely to visit the ACS emergency room and 8.7% more likely to be hospitalized. As a result, their Medicare costs (Medicare covers ED visits and hospitalizations) are 3.9% higher per patient and $ 1,080 more per patient than residents of private equity nursing homes that do not own ownership. became.
“Most of the income paid for long-term care in long-term care comes from public sources,” said Dr. Unruh. “After private Equity Acquisitions, poor quality of care, and increased resident Medicare spending should be a concern for policy makers. ”
This study guarantees more discussion as well as the growth impact of Private equity farm According to Dr. Unruh, it’s not just about acquisitions, it’s also about making ownership information available on websites that allow the general public to compare nursing home providers.
Robert Tyler Braun et al, Association on the Quality and Cost of Private Equity Investment and Long-term Care for Nursing Homes in the United States, JAMA Health Forum (2021). DOI: 10.1001 / jamahealthforum.2021.3817
Weil Cornell Medical College
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