This past November, at the Consumer Voice’s annual conference, Eileen O’Grady of PESP and other experts gave an overview of how private equity ownership of nursing homes can harm residents and shed light on economic practices common to almost all nursing homes. These practices result in little accountability for the billions of taxpayer dollars nursing homes receive each year and result in poor care and negative outcomes for residents.
O’Grady, Healthcare Campaign Manager at the Private Equity Stakeholder Project, explained what private equity is and the role it plays in nursing homes and the healthcare industry. The conference highlighted the report authored by O’Grady that detailed the practices of private equity nursing home owners and the effects on residents.
PESP Report, July 2021: Pulling Back the Veil on Today’s Private Equity Ownership of Nursing Homes
Detailing common practices such as sale-leasebacks, management fees, related parties, and dividend recapitalizations that private equity owners use to extract money out of nursing homes to the detriment to residents’ health and well being, O’Grady explained the problems that can occur for residents and listed particularly egregious instances of private equity ownership.
O’Grady revealed how many of these practices hide who really owns nursing homes and how much money they are making, calling for more transparency in nursing home ownership and finances.