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. 2017 Jan-Dec:54:46958017742761.
doi: 10.1177/0046958017742761.

What Happens to a Nursing Home Chain When Private Equity Takes Over? A Longitudinal Case Study

Aline Bos  1 , Charlene Harrington  2
Affiliations

What Happens to a Nursing Home Chain When Private Equity Takes Over? A Longitudinal Case Study

Aline Bos et al. Inquiry. 2017 Jan-Dec.

Abstract

We analyzed what happens to a nursing home chain when private equity takes over, with regard to strategy, financial performance, and resident well-being. We conducted a longitudinal (2000-2012) case study of a large nursing home chain that triangulated qualitative and quantitative data from 5 different data sources. Results show that private equity owners continued and reinforced several strategies that were already put in place before the takeover, including a focus on keeping staffing levels low; the new owners added restructuring, rebranding, and investment strategies such as establishing new companies, where the nursing home chain served as an essential "launch customer."

Keywords: care quality; nursing homes; private equity; staffing; strategy.

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Conflict of interest statement

Declaration of Conflicting Interests: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Figures

None
The legal restructuring results in the following simplified chart. Main source. Ernst & Young, Report of Independent Auditors GGNC Holdings LLC. Notes to Consolidated Financial Statements Periods Ended December 31, 2007 and 2006. 2008. USA. Note. The chart does not take into account the nursing homes that retain the name Beverly Healthcare, which is the case for around 80 homes. GGNSC = Golden Gate National Senior Care.
See this image and copyright information in PMC

References

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