The past two decades have seen a rapid increase in Private Equity (PE)
investment in healthcare, asector 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 the effectsof PE ownership on patient welfare at nursing homes.
With administrative patient-level data, we usea 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 accompaniedby declines in other measures of
patient well-being, such as lower mobility, while taxpayer spendingper
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 systematicshift in
operating costs post-acquisition toward non-patient care items such as
monitoring fees, interest,and lease paymen*
*
*
https://www.nber.org/system/files/working_papers/w28474/w28474.pdf
<https://www.nber.org/system/files/working_papers/w28474/w28474.pdf>
-=-=-=-=-=-=-=-=-=-=-=-
Groups.io Links: You receive all messages sent to this group.
View/Reply Online (#6636): https://groups.io/g/marxmail/message/6636
Mute This Topic: https://groups.io/mt/80843232/21656
-=-=-
POSTING RULES & NOTES
#1 YOU MUST clip all extraneous text when replying to a message.
#2 This mail-list, like most, is publicly & permanently archived.
#3 Subscribe and post under an alias if #2 is a concern.
-=-=-
Group Owner: [email protected]
Unsubscribe: https://groups.io/g/marxmail/leave/8674936/1316126222/xyzzy
[[email protected]]
-=-=-=-=-=-=-=-=-=-=-=-
