WASHINGTON, DC — A new rule to increase transparency of nursing home ownership and management has been finalized.

U.S. Senator Bob Casey (D-PA), chair of the U.S. Senate Special Committee on Aging, applauded the move by the Centers for Medicare and Medicaid Services.

He said opaque ownership structures have made it difficult to track compliance across nursing homes with the same owner. Several studies have reported private equity ownership is associated with higher costs for patients and the federal government and reduced staffing in order to deliver short-term gains.

“For far too long, private equity firms have largely been able to avoid scrutiny into their ownership of nursing home facilities, which is associated with raising costs on residents while delivering worse care,” said Casey. “This final rule from the Biden Administration will allow us to look under the hood of these facilities, giving us the tools we need to better protect nursing home residents and hold negligent or profiteering facility owners accountable.”

The final rule will require nursing homes to share with states and the federal government additional ownership and management information. The rule also includes private equity and real estate investment trust definitions, setting the stage for the disclosure of whether nursing home owners are private equity investors or real estate investment trusts. It would require nursing homes enrolled in Medicare or Medicaid to disclose additional information regarding owners, operators, and management. For example, nursing homes would disclose individuals or entities that provide administrative services or clinical consulting services.