Long-stay association of nursing homes afresh acquired by clandestine disinterestedness firms are added acceptable to accept ambulant care-sensitive emergency administration visits and hospitalizations compared to those blockage at non-private disinterestedness for-profit nursing homes, according to a afresh appear civic accomplice analysis.
Residents at PE-acquired nursing homes additionally accomplish college Medicare costs, the assay found.
Across a sample of about 10,000 for-profit nursing homes and added than 250,000 residents, Weill Cornell Medical College advisers begin beggarly annual ante of ambulant affliction acute emergency administration visits and hospitalizations to be 14.1% and 17.3%, respectively.
However, amid those blockage at 302 homes acquired by clandestine disinterestedness amid 2013 and 2017, the advisers saw an 11.1% about access in these emergency administration visits and an 8.7% about access in hospitalizations.
Further, beggarly annual Medicare costs per citizen were $8,050 beyond the abounding cohort. These additionally saw a about access of 3.9% afterwards a ability was acquired by clandestine equity, the advisers wrote.
“This accomplice abstraction suggests that [private equity] firm–owned nursing homes provided somewhat lower-quality abiding affliction than added for-profit homes based on two broadly acclimated affection measures and were associated with college absolute per-beneficiary Medicare costs,” the advisers wrote in JAMA Health Forum.
RELATED: Clandestine disinterestedness acquisitions targeted large, high-margin hospitals over 15-year period
Secondary analyses comparing antipsychotic use, astringent affliction and burden ulcers begin no cogent differences amid the two abstraction groups.
The advisers wrote that ahead appear studies of nursing home affection and clandestine disinterestedness buying accept been “inconsistent,” did not accommodate a civic accomplice and advised altered measures of quality.
Of note, one contempo abstraction appear in 2020 begin agnate COVID-19 case counts and deaths amid private-equity-owned homes and added accessories admitting captivation abate food of claimed careful equipment, they wrote.
An estimated 5% of U.S. nursing homes are endemic by clandestine equity, the advisers wrote, but circuitous accumulated structures generally active by these firms can accomplish it difficult to anticipate whether they own an absorption in these facilities.
These new data, forth with the accepted added burden aural clandestine disinterestedness to defended a concise return, “suggest that added acrimonious blank and advertisement of accompanying entities may be warranted,” the advisers wrote. “Policymakers ability accede authoritative added abundant buying advice accessible in outlets that accommodate consumers with advice on nursing home quality, such as Nursing Home Compare.”
RELATED: Private-equity-acquired hospitals bound buy into assisting account lines, for bigger or for worse
Weill Cornell Medical College articular private-equity-owned homes application abstracts from three proprietary and federal databases: S&P Capital IQ, Irving Levin Associates Health Affliction M&A and the Centers for Medicare & Medicaid Services’ Nursing Home Compare Ownership. They additionally calm Medicare fee-for-service claims and Minimum Abstracts Set assessments to body their sample of nursing home residents.
The final accomplice included 302 private-equity-owned nursing homes and 9,562 added for-profit homes, with 9,632 association active in the above and 249,771 association in the latter.
Assessments of private-equity-owned healthcare facilities’ performances are acceptable all-important as these firms booty on added ample stakes in the industry, the advisers wrote.
Beyond nursing homes, a contempo abstraction in Health Affairs begin hospitals afresh acquired by clandestine disinterestedness tend to accept assisting new casework and technologies added bound than their complete counterparts—an access that could potentially backlash if atypical casework after acknowledge themselves to be beneath able or added expensive.
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