Owner Incentives and Performance in Healthcare: Private Equity Investment in Nursing Homes-Reference-Cited by-同舟云学术

Owner Incentives and Performance in Healthcare: Private Equity Investment in Nursing Homes

Published:2023-11-22 Issue: Volume: Page:
ISSN:0893-9454
Container-title:The Review of Financial Studies
language:en
Short-container-title:

Author:

Gupta Atul¹,Howell Sabrina T²,Yannelis Constantine³,Gupta Abhinav⁴

Affiliation:

1. NBER and Wharton School, University of Pennsylvania , USA

2. NBER and NYU Stern , USA

3. NBER and Chicago Booth , USA

4. NBER and UNC Kenan-Flagler Business School , USA

Abstract

Abstract Amid an aging population and a growing role for private equity (PE) in the care of older adults, this paper studies how PE ownership affects U.S. nursing homes using patient-level Medicare data. We show that PE ownership leads to a patient cohort with lower health risk. However, after instrumenting for the patient-nursing home match, we find that PE ownership increases mortality by 11%. Declines in measures of patient well-being, nurse staffing, and compliance with care standards help to explain the mortality effect. Overall, we conclude that PE has nuanced effects with adverse outcomes for a subset of patients.

Funder

National Institute of Aging

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics,Finance,Accounting

Link

https://academic.oup.com/rfs/advance-article-pdf/doi/10.1093/rfs/hhad082/54041752/hhad082.pdf

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