Even before the federal government announced that it would release data on hospital and nursing home ownership as a means of casting light on the impact of private equity on provider quality and costs, regulators in Pennsylvania were proposing their own approach by seeking to vet those aspiring to purchase nursing homes in their state.

Under nursing home regulations proposed by the Pennsylvania Department of Health, regulators would have an opportunity to examine the past performance and financial strength of entities seeking to purchases nursing homes.  As more for-profit entities enter the industry, the department notes, they bring with them more complex financial arrangements, such as separate entities that divide the facility, the real estate on which it stands, and the company that manages the facility.  This is adding a new level of complexity to the challenge of holding operators accountable, understanding their financial performance, and analyzing the adequacy of the state’s Medicaid payments for long-term-care services, which the state’s nursing home industry has long complained are inadequate.

Learn more about Pennsylvania’s attempt to regulate entry into the long-term-care industry in the state in these proposed regulations that would govern nursing homes and their sale and the Philadelphia Inquirer article “Pennsylvania nursing home buyers would face more scrutiny under state health proposal.”