A recent Politico article sheds light on the exploitative practices of private equity firms and affiliated lenders in the nursing home industry, exemplified by the case of Atrium Health and Senior Living, that allegedly jeopardize the well-being of elderly residents.
The symbiotic relationship between nursing home operators and lenders highlights the alleged risks associated with the financialization of the industry, with both parties allegedly benefiting from government reimbursements but leaving vulnerable residents at risk when financial troubles arise.
In the context of these challenges, the article points out the lack of federal oversight and regulatory measures to protect nursing home residents. Despite the Biden Administration proposing nursing home reforms, including efforts to lift the veil on ownership details and establish minimum staffing standards, these proposals have faced obstacles and stiff industry lobbying campaigns. The article emphasizes the need for greater transparency, accountability, and regulations to prevent the exploitation of funds meant for resident care. Advocates argue for a shift in focus from profit-driven motives to prioritize the quality of care provided to elderly residents in nursing homes.