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Private Equity Firms own 42% of Nursing Homes in Tennessee; Which Studies Shown have Higher Mortality Rates
According to a 2022 report by the Center for American Progress, private equity firms now own an estimated 5.5% of all nursing homes in the United States. This represents a significant increase from just 0.5% in 2008.
The report also found that private equity ownership is more concentrated in certain regions, with firms owning a majority of nursing homes in some states. For example, private equity firms own 42% of nursing homes in Tennessee and 38% of nursing homes in Arizona.
There are a number of reasons why private equity firms have been investing in nursing homes in recent years. One reason is that the industry is relatively fragmented, with many small, independent nursing homes. This makes it an attractive target for private equity firms, which are looking to consolidate the industry and take advantage of economies of scale.
Another reason for the increase in private equity ownership is that the nursing home industry is highly profitable. In 2021…
