AG Wants Transparency on Nursing Home Ownership

On April 19, Attorney General Rob Bonta announced joining a multistate coalition in support of a proposed federal rule that would require nursing facilities to be more transparent about their true owners.

A 2020 report by the U.S. Department of Health and Human Services identified abuse, neglect, and misappropriation of property as widespread problems in nursing homes. However, those responsible for such substandard care decisions have in the past successfully hidden behind complex ownership and operations structures to evade accountability.

An analysis in the Journal of the American Medical Association found

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Proud partnership with: that when a nursing home is owned by for-profit, private equity companies, the residents’ quality of care is often negatively impacted due to reduced staffing, services, supplies, or equipment.

Another analysis by the National Bureau of Economic Research found a 10% increase in the short-term mortality of Medicare patients of nursing facilities with private equity ownership. This study also found worsening mobility of residents, declines in nurse availability per resident, and elevated use of antipsychotic medications in nursing facilities owned by private equity.

“Transparency” page 23

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