Study Finds Some Nursing Homes Shunt Profits Off-Book To Hide Them
Some homes were moving the majority of their profits to "related parties," companies owned under the same umbrella, in an effort to appear less well-off. Meanwhile, private equity in health care is in the spotlight again.
Stat:
Study: Nursing Homes Use Related Party Transactions To Hide Profits
A new study shows that some nursing homes are shunting the majority of their profits off of their own books and into less-visible corners of their owners’ pockets. (Trang, 3/7)
Axios:
Hospital Debacle Puts Focus On Private Equity
When Cerberus Capital Management bought an unprofitable Massachusetts hospital chain in 2010, many viewed the deal as a financial lifeline. Now some believe it was actually a noose. The company, which Cerberus sold four years ago, is in severe distress and may close facilities, threatening care for thousands of patients, most of whom live in lower-income areas. (Primack, 3/6)
KFF Health News:
Operating In The Red: Half Of Rural Hospitals Lose Money, As Many Cut Services
In a little more than two years as CEO of a small hospital in Wyoming, Dave Ryerse has witnessed firsthand the worsening financial problems eroding rural hospitals nationwide. In 2022, Ryerse’s South Lincoln Medical Center was forced to shutter its operating room because it didn’t have the staff to run it 24 hours a day. Soon after, the obstetrics unit closed. (Orozco Rodriguez, 3/7)
Reuters:
Patients Or Payroll? US Healthcare Hack Creates Hard Choices
Nearly two weeks after the ransomware attack on UnitedHealth's Change Healthcare unit that has disrupted claims processing across the U.S., doctors are beginning to face a no win choice - stop treating patients or stop paying staff. The attack, which was disclosed on Feb. 21, shut down the system that many doctors depend on to verify insurance coverage, file claims and get paid, sparking a campaign by hospitals and doctors for the U.S. government to provide financial relief as it did during the COVID-19 pandemic. (Steenhuysen, 3/7)
