The American long term care system has changed dramatically over the last several years as the need for care has increased steadily with the aging of the boomer generation. The most important change has occurred in the Medicaid funded part of the system as several states, with strong federal support, have moved toward contracting with large for profit insurance companies to provide overall administration of medicaid LTC services, displacing non-profit organizations from the administration of home and community based services. Private equity firms have also become increasingly active in the LTC space with investments in wide range of LTC related industries. We have many concerns about the impact these trends on both medicaid beneficiaries and taxpayers.
The following sites provide an overall view of some of the information that has led to our concerns about these trends, including reports prepared and materials organized by Pepper Center staff. We intend to update this information at regular intervals.
The U.S. is the only other country that has outsourced as much of its publicly supported LTC system as the U.K. has. Private health insurance companies now administer many state Medicaid LTC programs through managed care organizations and investment firms, mainly private equity companies, now own very substantial portions of the nursing home industry.
Nursing homes are increasingly owned by private investment groups who manage them through complex administrative structures that make the assignment of responsibility for deficiencies in care provided to the residents very difficult.
Overdoses, bedsores, broken bones: What happened when a private-equity firm sought to care for society’s most vulnerable
Public Long-term care programs, including medicaid funded programs, are increasingly being administered by for profit corporate health firms and funded through financial companies, especially private equity.