1. Owner Incentives and Performance in Healthcare: Private Equity Investment in Nursing Homes.
- Author
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Gupta, Atul, Howell, Sabrina T, Yannelis, Constantine, and Gupta, Abhinav
- Subjects
NURSING care facilities ,PRIVATE equity ,BUSINESS enterprises ,NURSING home patients ,MEDICAL care standards ,MORTALITY ,WELL-being - Abstract
Amid an aging population and a growing role for private equity (PE) in the care of older adults, this paper studies how PE ownership affects U.S. nursing homes using patient-level Medicare data. We show that PE ownership leads to a patient cohort with lower health risk. However, after instrumenting for the patient-nursing home match, we find that PE ownership increases mortality by 11%. Declines in measures of patient well-being, nurse staffing, and compliance with care standards help to explain the mortality effect. Overall, we conclude that PE has nuanced effects with adverse outcomes for a subset of patients. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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