Abstract

Private equity has acquired multiple large nursing home chains within the last few years; by 2007, it owned six of the 10 largest chains. Critics allege that Private equity nursing homes compromise quality of care in pursuit of profits and have called for greater regulatory oversight. Using multiple secondary datasets like OSCAR, MDS and Medicare cost reports, this study examines the quality and financial performance of private equity nursing homes in Florida. Results suggest that private equity facilities deliver superior financial performance with little difference in quality compared to other investor owned nursing homes. Policy and managerial implications are discussed.

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