• The US House Ways and Means Committee passed legislation on March 6 to block the federal minimum staffing proposal for nursing homes. While the current proposed staffing rule is woefully inadequate, the legislation would prohibit federal regulators from ever creating rules about a safe staffing standard in nursing homes.
• The Justice Department, Federal Trade Commission, and Health and Human Services Department announced a joint investigation into the impact of private equity on healthcare. The agencies aim to understand how certain transactions affect patient care and affordability. A study published in BMJ revealed that private equity acquisitions in healthcare, and particularly in nursing homes, often resulted in increased costs for patients and payers, alongside declines in quality of care.

• A study by PHI suggests that nursing homes relying on contract staffing for certified nursing assistant (CNA) positions tend to have lower quality care compared to those without such practices. The proportion of CNA hours filled by contract workers has risen from 2% to 11% between 2017 and 2022. PHI emphasizes the importance of retaining on-staff CNAs for continuity of care and recommends policy changes, including higher wages and benefits, to attract and retain CNAs.

• Study after study show substantial hidden profits within the nursing home industry. Despite this, industry leaders and lobbyists claim significant financial challenges for skilled nursing facilities.
  • Meanwhile, a survey by BBG real estate services indicates that investments in senior living and care are likely to experience growth or stability in 2024, with increased “market optimism.”
• A recent study of nursing home profits and finances found that the average nursing home makes close to 9% profits when disallowed expenses and depreciation are factored in. On March 17, Professor Robert Tyler Braun, one of the study’s investigators, will be conducting a webinar, Shedding Light on Nursing Home Industry Spending and Profits. The webinar is free and open to the public.

Consumer Voice surveyed over 120 residents, with 88% stating their facilities lacked sufficient staff to meet residents’ needs. Residents stress the importance of consistent staffing for quality of life and safety, highlighting the urgent need for stronger enforcement of staffing standards to ensure their basic well-being. Charts via Consumer Voice.