What private equity does to nursing homes

When private equity takes over nursing homes, it reduces staff, decreases paid hours, and increases death rates by 11%. While only about 10% of nursing homes are owned by private equity, this number is growing fast. Just 3 years ago it was 5%.

Once private equity runs a nursing home into the ground, they run their standard playbook: file for bankruptcy, close the home, and then find a new nursing home so they can repeat the cycle. They also use complex corporate structures to self-deal to their own nurse staffing companies, paying more to those services and supplies that they also own to siphon off more funding.

Even worse, 85% of funding for these homes comes from OUR taxes. They are literally robbing us blind. Private equity does all of this without actually improving financial margins, operating efficiency, or any of the things that it "promises" to deliver.

Life Care Centers of America and New Generation Healthcare are some of the worst offenders.

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