title: Private investment purchase and nursing home financial health.
abstract: OBJECTIVE
  To explore the impact of nursing home acquisition by private investment firms on nursing home costs, revenue, and overall financial health.
  
  
  METHODS
  Merged data from the Medicare Cost Reports and the Online Survey, Certification, and Reporting system for the period 1998-2010.
  
  
  METHODS
  Regression specification incorporating facility and time fixed effects.
  
  
  RESULTS
  We found little impact on the financial health of nursing homes following purchase by private investment companies. However, our findings did suggest that private investment firms acquired nursing home chains in good financial health, possibly to derive profit from the company's real estate holdings.
  
  
  CONCLUSIONS
  Private investment acquired facilities are an important feature of today's nursing home sector. Although we did not observe a negative impact on the financial health of nursing homes, this development raises important issues about ownership oversight and transparency for the entire nursing home sector.
authors.affiliation: Health Policy Interfaculty Initiative, Harvard University, Cambridge, MA.
authors.forename: Rebecca
authors.initials: R
authors.lastname: Orfaly Cadigan
authors.forename: David G
authors.initials: DG
authors.lastname: Stevenson
authors.forename: Daryl J
authors.initials: DJ
authors.lastname: Caudry
authors.forename: David C
authors.initials: DC
authors.lastname: Grabowski
mesh_terms: D005376:Financial Management; D007449:Investments; D006278:Medicare; D009735:Nursing Homes / Q000191:economics*; D010067:Ownership; D017149:Private Sector; D011332:Privatization / Q000191:economics*; D011795:Surveys and Questionnaires; D014481:United States
keywords: Private investment; costs; financial health; nursing homes
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