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February 22, 2021 11:01 pm
Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/2EkKTHLjRH4/does-private-equity-investment-in-healthcare-benefit-patients-evidence-from-nursing-homes
Does Private Equity Investment in Healthcare Benefit Patients? Evidence from Nursing Homes
The summary of a study by National Bureau of Economic Research: The past two decades have seen a rapid increase in Private Equity (PE) investment in healthcare, a sector in which intensive government subsidy and market frictions could lead high-powered for-profit incentives to be misaligned with the social goal of affordable, quality care. This paper studies [PDF] the effects of PE ownership on patient welfare at nursing homes. With administrative patient-level data, we use a within-facility differences-in-differences design to address non-random targeting of facilities. We use an instrumental variables strategy to control for the selection of patients into nursing homes. Our estimates show that PE ownership increases the short-term mortality of Medicare patients by 10%, implying 20,150 lives lost due to PE ownership over our twelve-year sample period. This is accompanied by declines in other measures of patient well-being, such as lower mobility, while taxpayer spending per patient episode increases by 11%. We observe operational changes that help to explain these effects, including declines in nursing staff and compliance with standards. Finally, we document a systematic shift in operating costs post-acquisition toward non-patient care items such as monitoring fees, interest, and lease payments.Read more of this story at Slashdot.
Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/2EkKTHLjRH4/does-private-equity-investment-in-healthcare-benefit-patients-evidence-from-nursing-homes
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