Private Equity Nursing Homes

A report from April 2025 entitled Private Equity is Continuing to Acquire – and Bankrupt – Nursing Homes found:

• Private equity has remained active in buying up skilled nursing facilities (i.e. nursing homes) in recent
  years, even as less attention has been placed on this activity.
• Complex ownership structures and lack of transparency around private equity in general make it difficult
  to track which firms are currently invested in skilled nursing facilities.
• Recent estimates for the percentage of US nursing homes owned by private equity range from 5 to 13
  percent. The higher estimate is more likely given the continued issues around nursing home ownership
  transparency.
• After the Biden administration increased scrutiny of private equity’s involvement in the nursing home
  space and in healthcare more generally, industry voices have attempted to downplay private equity’s
  involvement in nursing homes.
• Recent industry messaging has suggested that private equity has not made nursing home acquisitions
  in recent years. PESP identified at least six private equity-backed nursing home deals in the previous
  three years. This number is likely an undercount, as PESP’s methodology used to identify deals was not
  exhaustive.
• Nursing homes owned by private equity continue to face risks related to profit-seeking, use of debt, and
  monetization of real estate, which can leave fewer funds for operations and staffing.
• At least two nursing home companies owned by private equity firms and a private equity firm that itself
  owned nursing homes, have filed for bankruptcy in recent years: LaVie Care Centers/Consulate Health
  Care (Formation Capital) in 2024, Goldner Capital Management in 2024, and Gulf Coast Health Care
  (Barrow Street Capital) in 2022.
• As part of LaVie Care Centers’ 2024 bankruptcy proceedings, the court ordered regular status reports
  on the quality of patient care to be conducted by state long-term care oversight entities. The reports
  describe harrowing conditions at multiple LaVie/Consulate facilities in Virginia, Mississippi, and
  Pennsylvania.
• Leading up to the bankruptcy of Goldner Capital Management, multiple nursing homes it owned had
  unpaid creditors and at least four received termination notices from CMS, effectively shutting them
  down and forcing residents to relocate.
• Gulf Coast Health Care’s private equity ownership has not previously been reported on, perhaps
  because of the complexity and secrecy of its ownership and operations revealed only through its
  bankruptcy filings.
• Recently, nursing homes have also had to confront financial risks as their owners take on debt in the form
  of private credit issued by lenders owned by private equity. MidCap Financial, a private lender affiliated
  with Apollo Global Management, has been the lender for at least one nursing home company and two
  hospitals that have filed for bankruptcy.
• The Biden administration brought greater scrutiny to private equity’s investments in nursing homes, with
  increased federal efforts at bringing more transparency to, and setting minimum staffing standards for,
  nursing homes.
• The current Trump administration poses significant challenges to private equity regulation, as weakening
  the administrative state and deregulating the corporate sector appear to be among its top priorities.
• With the current federal regulatory and policymaking landscape becoming an increasingly challenging
  place to create much needed policy changes and to enforce current regulations, state legislatures may
  prove the most likely avenues to win legislation necessary to protect patients, workers, and communities
  from private equity’s harms in nursing homes, and in healthcare more generally.
• Private equity firms rely on the fact that there is very little oversight over what they do, and for that
  reason it is more important than ever to continue to shine a light on private equity’s investments in
  nursing homes.

If you or a loved one suffered injuries (or worse) while a resident of a nursing home in the United States due to nursing home neglect, nursing home negligence, nursing home abuse, nursing home under-staffing, nursing home pressure ulcer (bedsore), or the nursing home failing to properly care for a vulnerable adult, you should promptly find a nursing home claim lawyer in your state who may investigate your nursing home claim for you and file a nursing home claim on your behalf or behalf of your loved one, if appropriate.

Click here to visit our website to be connected with medical malpractice attorneys (nursing home claim attorneys) in your U.S. state who may assist you with your nursing home claim, or call us toll-free in the United States at 800-295-3959.

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