Nursing homes owned by private investors and other types of for-profit operators had more total deficiencies than homes run by public companies, according to a new report.
In response to concerns that the quality of care of a nursing home suffers after an acquisition, the Government Accountability Office studied changes in nursing homes that were acquired by PI firms both before (in 2003) and after (in 2009) a transaction. It examined deficiencies cited on state surveys, nurse staffing levels and financial performance. The results are published in “Nursing Homes: Private Investment Homes Sometimes Differed from Others in Deficiencies, Staffing, and Financial Performance.”
The report found that on average, privately owned and for-profit nursing homes had more total deficiencies than nonprofit homes both before and after acquisition. PI-acquired homes also were more likely to have been cited for a serious deficiency than nonprofit homes before, but not after, an acquisition, the report states.
The GAO also found that total nurse staffing ratios were lower in PI homes, but the staffing mix was different. According to the report, “RN ratios increased more from 2003 to 2009 in PI homes than in other homes, while CNA ratios increased more in other homes than in PI homes. The increase in RN ratios in PI homes from 2003 to 2009 was greater if the same PI firm acquired both operations and real estate than if not.”