Biden Administration Calls for Transparency in Nursing Home Ownership and Operation: Research reveals that for-profit and private equity ownership of nursing homes is connected with increased nursing home malpractice and wrongful death.

According to a USA Today article, the Biden administration has proposed a rule calling for nursing homes to reveal if they are owned and operated by private equity firms or real estate investment trusts. The rule calling for transparency of ownership, issued by the Centers for Medicare and Medicaid Services earlier this month, relates to the president’s intention to reform nursing homes.

The complex ownership of certain American nursing home chains can make it unclear who decision makers are and where taxpayer money goes, as well as whether or not nursing homes are profitable. Disclosure of ownership and financial information will directly inform future policies intended to decrease nursing home malpractice related to poor quality of care. But in the meantime, says U.S. Health Secretary Xavier Becerra, the information about ownership would be made public as a means of informing consumers. When and how this information will be shared has not yet been decided.

Becerra is quoted in the article as saying that quality of care in nursing homes continues to decrease while costs soar. He also noted that recent studies have shown that ownership has an impact on quality of care in nursing homes.

The White House has previously noted that residents of private equity-owned nursing facilities have a greater likelihood of experiencing serious negative outcomes related to nursing home malpractice, some which necessitate the involvement of a wrongful death attorney. The Biden administration has named the following as negative outcomes more likely for residents of private equity-owned nursing homes:

  • More nursing home injuries and illnesses that require hospitalization
  • Higher mortality rates
  • Higher nursing home infection rates

Nursing homes could be required to give updated information regarding direct and indirect ownership by mid-year.

Fighting Elder Abuse, Nursing Home Malpractice, and Wrongful Death

As a nursing home malpractice and wrongful death attorney, Brian P. Murphy has years of experience holding Philadelphia/PA and NJ nursing homes responsible for nursing home abuse and neglect. Residents of Philadelphia/PA or NJ nursing homes should feel safe and secure and should expect the facilities in which they live to respect every right to which they are guaranteed under federal law.  Having practiced for years as a wrongful death attorney, Brian Murphy fearlessly confronts negligent nursing homes and steadfastly pursues the successful resolution of his clients’ cases. Should you find yourself needing to contact a nursing home malpractice and wrongful death attorney, call Brian Murphy today to discuss your legal options.