Owner Incentives and Performance in Healthcare: Private Equity Investment in Nursing Homes

• 成果类型: Article
• 署名作者: Gupta, Atul; Howell, Sabrina T.; Yannelis, Constantine; Gupta, Abhinav
• 署名单位: University of Pennsylvania; National Bureau of Economic Research; University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad082
• 发表日期: 2024
• 页码: 1029
• 关键词: quality-of-care; POST-ACUTE CARE; buyouts; nonprofit; FIRMS; CONVERSIONS; COMPETITION; facilities; mortality; ECONOMICS

摘要

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.