![]() ![]() ![]() ![]() As part of the conditions, each facility must maintain a specific quality rating for five years, at risk of increased state scrutiny. In this case the state did ultimately establish important post-sale conditions, requiring the new owners to maintain quality levels at each facility. Meanwhile, recent economic conditions have put an increasing number of healthcare companies at risk of credit downgrades and potential debt defaults. Instead, the buyers were allowed to abide by already-existing private equity norms. ĭuring this process, health officials had opportunities to establish appropriate safeguards for Rhode Island’s nursing home residents, including placing stronger limits on debt to finance the acquisition. In their initial review of the proposed transaction, some state health officials minimized poor quality ratings and safety concerns documented at nursing homes that were already owned by the sale’s buyers. In the latter half of 2022, the Rhode Island Department of Health approved a sale of 10 nursing homes to private equity firm Tryko Partners and another operator for $85 million. It is important for state health officials and policymakers to consider how to apply and expand protections against harms caused by private equity’s extractive business model: This case study provides a good example of how to do that, but also includes certain pitfalls for officials to beware of. A recent sale of 10 nursing homes provides an example of how complicated private equity healthcare acquisitions can be, and the ways in which state officials can oversee and regulate private equity acquisitions-both at the time of sale, and in the years after. ![]()
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