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⭒ New Developments

Study Finds Nursing Home Profits Are Robust $11 Billion

A new study has found that nursing homes make about $11 billion in profits annually. The authors of the study looked at the 2019 Medicare cost reports of 11,752 nursing homes and determined they made $126 billion in net revenue. When disallowed costs and depreciation were excluded, the facilities’ profit margins were about nine percent. In addition, $11 billion was collectively paid to “related parties,” companies owned by the nursing home owner, which appear as legitimate expenses, but likely concealed considerable profits. The study shows that nursing home profits are robust, despite the constant cries by the industry that they need more taxpayer money to remain financially viable.