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Healthcare Essentials

March 8, 2023

A Look Inside Ownership

By Wes Scott, Christine Burke Worthen, Lily Shannon

The U.S. Department of Health and Human Services continues to take unprecedented steps to “improve the quality and care available at nursing homes.” The newest rule enforces portions of Section 6101(a) of the Affordable Care Act and requires nursing homes enrolled in Medicare and Medicaid to disclose the existence of any private equity company or real estate investment trust that has ownership in the nursing home. This transparency comes from increased “concerns about the quality of care and operations of nursing facilities owned by private equity companies and other types of investment firms” since 2011.

The intent of these new requirements is twofold: to permit families to make more informed decisions regarding where their members receive care and to allow the Centers for Medicare and Medicaid Services more insight into ownership structures and impact on outcomes. Whether these goals will be realized remains to be seen, however, the continued push for transparency across the healthcare delivery system shows no signs of slowing down.