CT Lawmakers Push for Private Equity Nursing Home Transparency

0:00It's April 15th. This is Hartford News Today, driven by AI. Connecticut lawmakers are pushing hard for more transparency from private equity firms owning nursing homes here in the state. Studies show these facilities often have higher death rates, more deficiencies, and increased hospitalizations compared to others. Now with Senate Bill 125, they're aiming to force these firms to report investor names, business addresses, and full financial details. Every year to the Department of Social Services. The bill also blocks private equity outfits using real estate investment trusts from selling off nursing home properties for five years after vying. Them, unless the Public Health Commissioner approves it for better patient care or stability. This comes after revisions to avoid banning private equity outright since not every player is out to cut corners. Lawmakers like Senate President, Pro Tem Martin Looney call private equity's role in nursing homes and other essential services, dangerous and toxic.

1:00Senator Jan Hochidell points to past messes like prospect medical holdings which owned struggling hospitals in Rockfield, Manchester, and Waterbury before filing bankruptcy last year. Those spots dealt with short staffing and old equipment until new buyers stepped in. Research backs the worries with the health policy paper linking private equity to worse outcomes overall despite some process improvements. President Professor Toul Gupta found mortality jumping 11% post acquisition with 8% higher spending but fewer nurses in dropping quality ratings. A watchdog group says just 5.4% of Connecticut nursing homes are private equity owned, but no one knew that for sure until now. Opponents argue private investment brings needy cash and expertise to fix rundown spots amid staffing shortages. The bill passed the agent committee and heads to the full Senate, so expect more debate on balancing profits with patient dignity in these fragile final years.