Are non-profit nursing homes better than for-profit homes?

The U.S. Government & Accountability Office just released a study that looked at differences between for-profit and non-profit nursing homes. What they found was that for-profit nursing home were more likely to have serious deficiencies which posed actual harm or immediate jeopardy to residents than non-profit nursing homes, resulting in nursing home neglect.

The GAO study examined how nursing homes that were acquired by private investment forms differed from other nursing homes in three areas:

  1. deficiencies cited on state surveys
  2. nurse staffing levels financial performance

The study found that nursing homes acquired by private investors effected cost-cutting measures which reflected on the quality of nursing care and the ratio of skilled nursing care to residents were cut after the nursing home acquisition. The resulting effect is that vulnerable adults received less care, often to their detriment.

One area in which PI firms seemed to spend money was on the capital expenses which increased the attractiveness of the home to attract higher paying residents. However, these types of changes did not relate to the bottom line care to the residents.

It is no surprise that for-profit nursing homes owned by PI works to maximize profit to provide a returns for investors and owners. At for-profit homes, they work hard to minimize costs which often relates to trimming staff.

At The Farber Law Group, we have found in our 30 year career of representing victims of nursing home neglect that often the for-profit nature of a nursing home often results in less care for the patient. When we see cases of severe bedsores, falls resulting in hip fractures or even physical or sexual abuse, we often find the cause is that there was not enough trained supervision of patients.

If you have a loved one who was seriously injured or died due to nursing home staff negligence or abuse, contact The Farber Law Group, a Bellevue law firm specializing in nursing home abuse and neglect cases.

Nursing Homes: Private Investment Homes Sometimes Differed from Others in Deficiencies, Staffing, and Financial Performance; U.S. Government Accountability Office; July 15, 2001
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Contact The Farber Law Group at 1-800-244-9087 or to schedule a free and confidential case evaluation. We have offices in Seattle and Bellevue to assist you.

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