Ownership Change and Quality

Angie Szumlinski
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January 2, 2025
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A recent study conducted by the University of Pennsylvania Leonard Davis Institute of Health Economics highlights a link between ownership change and quality in nursing homes. The study, shared by Skilled Nursing News, found that when nursing home ownership changes occur, they often signal financial challenges, including lower star ratings, decreased occupancy, and a higher percentage of Medicaid-covered stays—factors that significantly impact financial stability. Interestingly, quality measure scores were higher following ownership changes, despite being self-reported, making them the only aspect of the Five-Star Rating to show improvement.

To be clear, post-acute care is not alone in the merger and acquisition trend sweeping the healthcare industry. For example, a joint venture between Henry Ford Health and Ascension Michigan launched successfully in early October. Additionally, MyMichigan Health acquired Ascension Northern Region Michigan facilities. These acquisitions aim to build on existing legacies while enhancing access to care and services for local communities.

Does change always lead to improvement? The mixed results from ownership changes in nursing homes suggest otherwise, but they emphasize the need to focus on maintaining quality care during transitions. The connection between ownership change and quality underscores the importance of tracking outcomes and ensuring consistent care standards.

Let’s keep a close eye on these changes while continuing to prioritize the well-being of residents. After all, delivering quality care transcends who owns the facility. Stay well and stay informed!


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