Lawmakers Push for More Transparency from Nursing Home Owners
Finding the true owners behind local nursing homes is a challenge that federal health officials hope to resolve, according to a new report released this week.
A bipartisan group of lawmakers, including Senators Chuck Grassley, Max Baucus, and Rep. Pete Stark, commissioned the report, which found that private investment firms are buying up nursing homes at an increasing rate, leaving behind a complicated trail of ownership information.
A select group of investment companies is currently responsible for the care of hundreds of thousands of seniors. Private equity firms purchased more than 1,800 nursing facilities in the last decade. Ten large firms made nearly 90 percent of the purchases. Unfortunately, these private buy-ups make it nearly impossible to determine who is operating many facilities and who is ultimately to blame for negligent care.
Lawmakers are advocating a new law that would require nursing home facilities to provide more detailed ownership information so that they can properly oversee nursing homes and hold the correct parties accountable. Sen. Baucus explained that the new health care reform law will “shed light on who owns nursing homes, who is making care decisions, and how these facilities are being run.”
The lawmakers also requested a follow-up report that would evaluate the relationship between these corporate ownership structures and the quality of care that they provide.