Thousands of nursing homes across the nation have been bought up by large Wall Street investment companies in recent years in a move that appears to be harming patients, The New York Times reported Monday
And as private equity firms like Warburg Pincus and the Carlyle Group, better known for buying companies like Dunkin’ Donuts, have snapped up these homes, residents on average have fared more poorly than occupants of other homes.
Common problems include depression, loss of mobility and loss of ability to dress and bathe themselves, according to data collected by the Centers for Medicare and Medicaid Services.
The typical nursing home acquired by a large investment company before 2006 scored worse than national rates in 12 of 14 indicators that regulators use to track ailments of long-term residents, like bed sores and preventable illnesses.
Before they were acquired by private investors, which often cut costs, services and then sell the facilities at a profit, many of those homes scored at or above national averages in similar measurements.