Real Estate Investors Buy Nursing Homes, Death Rates Rise 10%
Real estate investment trusts now own thousands of nursing homes and assisted living facilities across America. A 2021 study found death rates at private equity-owned facilities rose 10% as investors cut costs to maximize profits.
Wall Street investors are quietly taking over America's nursing homes and assisted living facilities. Real estate investment trusts now serve as landlords for thousands of care facilities nationwide.
These companies don't directly provide care, but they often select the managers who do. When problems arise, they typically deny blame for poor treatment of residents.
The consequences can be deadly. A 2021 study found that death rates at private equity-owned facilities jumped 10% during the past two decades. Investors made devastating cuts to staff and services to boost returns.
The senior housing market includes independent living, assisted living, nursing homes, memory care, and hospice facilities. Investors see big opportunities as America's population ages.
But the industry faces major challenges. Many seniors prefer aging in their own homes. Facilities struggle with labor shortages and strict regulations. Still, investors keep pouring money into the sector.
This creates a troubling dynamic where financial returns often take priority over resident safety and comfort.
If you or a loved one needs long-term care, you could end up in a facility owned by investors focused on profits over patient care. These companies control where you live but often deny responsibility when care suffers.
More facilities will likely shift to investor ownership as demand for senior housing grows with an aging population.
Was this article helpful?
0 people found this helpful