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Private Equity Investment Leads to Higher Death Rate in Nursing Homes

On Behalf of | Mar 15, 2021 | Elder Abuse

Long-term care facilities have seen a disproportionate number of fatalities amid the coronavirus pandemic, even with their patients’ susceptibility in mind. More than a third of deaths related to Covid-19 can be linked to a long-term care facility.

Nation-wide, lawsuits are piling up against nursing homes that failed to provide their residents with adequate care during the pandemic. Neglect and the withholding of medical care are considered elder abuse under California law. If you lost a loved one during the pandemic and believe they were denied the care they deserved, you need a wrongful death attorney in California. The dedicated team at Licata & Yeremenko, A Professional Law Corporation has successfully helped families in elder abuse cases. When you need an elder abuse lawyer, call Licata & Yeremenko, A Professional Law Corporation today.

Study Finds Higher Risk of Death in Private Equity Nursing Homes

Amid the pandemic, nursing homes have seen thousands of Covid-19 deaths. Nursing home facilities hold the most at-risk patients. However, a study published by the National Bureau of Economic Research found that private equity investment in long-term care facilities had a substantial impact on the mortality rate of its residents even before the pandemic.

  • Medicare patients are at a 10% higher risk of death
  • Over a 12-year sample, the study estimates 20,150 lives were lost due to private equity ownership
  • In the same sample period, mobility declined
  • Taxpayer spending increased 11% per patient
  • Antipsychotic drugs were 50% more likely to be used on residents
  • Frontline nursing assistant hours declined by 3%
  • Overall staffing declined by 1.4%
  • Expenses, including monitoring fees, lease payments, and interest payments, jumped 300%

The study’s disturbing findings have contributed to the spotlight on private equity nursing homes amid the skyrocketing death toll from the coronavirus.

House Hearing for Private Equity Investment in Long-Term Care Facilities

Answers are being sought amid the high death toll at nursing homes during the pandemic. Rep. Bill Pascrell’s opening statement during the House hearing asks, “How many grandmothers and grandfathers died because profits were prized above lives, with our taxpayer dollars funding this?”

Private equity investment has had an increasing role in health care. The Hearing centered around the need for transparency in ownership and management.

“The fact is we do not know whether anyone chain is making money or losing money. We don’t know if an individual nursing home is highly profitable or on the verge of bankruptcy,” Ernest Tosh testified. Ernest Tosh is a trial lawyer who specializes in nursing home abuse.

The proposed legislation would see stricter staffing requirements, increased Medicaid funding, and transparency.

California Elder Abuse Attorneys

The dedicated attorneys at Licata & Yeremenko, A Professional Law Corporation understand elder abuse can take many forms.

  • Physical abuse occurs whenever there is intentional harm inflicted on a person
  • Sexual abuse is any form of non-consensual sexual activity
  • Emotional abuse can often be challenging. Emotional abuse of an elder includes harassment, verbal assault, threats of abuse, or intimidation
  • To withhold funds or misuse an elder’s assets is financial abuse
  • Neglect can be withholding food, medical care, prescription medications, physical exercise, and other basic necessities. Amid the pandemic, the withholding of appropriate medical care has been cited in numerous complaints across the country.

If you suspect an elder loved one of being abused, you need an elder abuse attorney in California. Let the knowledgeable staff at Licata & Yeremenko, A Professional Law Corporation protect the ones you love. Contact us on our website for a free consultation by clicking here or calling us at 818-783-5757.