Private-equity acquisitions not necessarily bad, Harvard study finds

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A year after a news report uncovered resident care and ownership problems at nursing homes recently purchased by private equity groups, a new report from Harvard Medical School blunts the findings: Quality at nursing homes does not necessarily suffer, and, in certain cases, care was actually shown to improve under new ownership. After comparing the quality of care at private-equity owned nursing homes to privately owned nursing homes, researchers discovered little to no causal evidence supporting the belief that quality of care declines after corporate takeover. More than 1,500 nursing homes were studied for the report. Last September, a New York Times analysis asserted that private equity firms overlooked care for the sake of profits, and that complicated corporate structures made it hard for families of residents to sue facilities over poor care.

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