News Article

GAO Report Finds Transparency Gaps in Private Equity Nursing Home Ownership

September 27, 2023

House Ways and Means Committee Ranking Member Richard E. Neal (D-MA) released a report titled “Limitations of Using CMS Data to Identify Private Equity and Other Ownership” from the U.S. Government Accountability Office (GAO) that shows transparency gaps in the data collected by the Centers for Medicare and Medicaid Services (CMS) to identify private equity and other owners in nursing homes.  GAO was asked to review CMS’s nursing home ownership data for information about private equity owners. Their report 1) estimates the percentage of Medicare-enrolled nursing homes in 2022 that were private equity-owned and 2) describes the limitations of using CMS’s data to identify private equity and other owners of nursing homes.  The report found significant limitations in CMS' ability to identify a nursing homes' ownership, including those that are private equity-owned.

Transparency in nursing home ownership is critical - different types of nursing home ownership result in different care quality for residents. For instance, a recent study documented that Medicare residents in nursing homes, owned by private equity investment firms, had an increased mortality rate of 10%. Nursing home residents and their families must have access to reliable and thorough ownership information when making decisions about their care.  Consumer Voice has been continually advocating for increased transparency of nursing home ownership. Visit our website to learn more about the issue.