Operators should prioritize RN staffing continuity during transitions to minimize rating impacts and maintain compliance with minimum staffing requirements.
Nursing Home Compare star ratings before versus after a change in nursing home ownership
One in five (23%) facilities changed ownership between 2016 and 2022. Nursing homes that were urban, for-profit, part of a chain, located in the South, had >50 beds, lower occupancy, higher percentage of stays covered by Medicaid, higher percentage of residents with non-white race, or a 1-star (poor) rating were more likely to undergo a change in ownership.
Ryskina, Kira L., et al. “Nursing Home Compare Star Ratings Before Versus After a Change in Nursing Home Ownership.” Journal of the American Geriatrics Society, vol. 72, no. 10, Oct. 2024, pp. 3078–3088, doi:10.1111/jgs.19104.
Drop in CMS Five-Star Ratings and RN Numbers Linked to Nursing Home Ownership Change
Overall quality ratings decreased slightly with ownership change, about 0.1 points on the Five-Star scale. The health inspection component showed a small decline, while the staffing rating was reduced by about 0.2 points.
Staffing levels dropped most noticeably for registered nurses (RNs) compared to nurses in more administrative roles, the study found, measured by hours per resident day (HPRD) using payroll-based data. While the drop in RNs needs further study, researchers said the change could have been caused by changes with the new owners, staff reductions or nurses simply leaving or retiring.
— Skilled Nursing News, September 5, 2024
Changes in nursing home ownership may depress care and staffing, report finds
They found a slight decrease in the overall quality ratings of nearly 0.1 point on the 5-star scale, which was primarily driven by a 0.2 point decline in staffing ratings, as well as a 0.07 point decrease in health inspection ratings. The overall decline in facility ratings was offset somewhat by a 0.15 point increase in certain quality measures, the researchers found.
“Overall, we observed a negative, albeit small impact of change of ownership on the 5-star quality ratings,” Ryskina said. “Our current work extends the literature about the negative impact of private equity acquisitions on patient outcomes to other types of ownership changes, but also shows the impact on the 5-star ratings is relatively small.”
— McKnight’s Long-Term Care News, September 4, 2024
