The Lacuna Project

lacuna (n.) a gap in a record where something should be

Independent research. Not affiliated with any government, agency, or company.

Exhibit 183

Owner incentives and performance in healthcare: private equity investment in nursing homes

Exhibit 183 ยท Peer-reviewed study

Owner incentives and performance in healthcare: private equity investment in nursing homes

after instrumenting for the patient-nursing home match, we find that PE ownership increases mortality by 11%

Estimated an 11 percent relative increase in mortality among nursing-home patients after private equity acquisition, adjusting for the lower measured risk of patients the acquired homes admitted. Combined differences over time with an instrument based on relative distance to private equity and other nursing homes, so the estimate applies to patients whose placement responds to that instrument. Reported declines in patient well-being, staffing and compliance with care standards.

Source
Gupta et al., The Review of Financial Studies 37(4):1029
Date
April 2024
Quoted from
Abstract, as deposited by the publisher in Crossref (Rev Financ Stud 37(4):1029-1077)
Grade
Peer-reviewed
Document
https://doi.org/10.1093/rfs/hhad082
Accessed
2026-11-09
Cited by
Findings citing this exhibit
Note
A 2021 Becker Friedman Institute summary of the earlier working paper reported 1.7 percentage points (about 10 percent) and an extrapolation of 20,150 deaths over twelve years; those figures belong to the earlier version.

Cited by

Finding MED-9.8
Peer-reviewed After private equity acquisition, hospital-acquired conditions rose at acquired hospitals and patient mortality rose at acquired nursing homes. A third study found lower heart-attack mortality at acquired hospitals.