REIT Ownership of Nursing Homes Linked to Changes in Clinical Staffing Patterns

Real estate investment trust (REIT) investment in nursing homes has been linked to an increase in some clinical staff hours per resident day – specifically a 2.15% and 1.55% percent bump in licensed practical nurse (LPNs) and certified nursing assistant (CNAs) hours, respectively.

Registered nurse (RN) hours, on the other hand, decreased 6.25% in the two to three years following REIT investment.

That’s according to a new study published in Health Affairs on Wednesday; to date, there has been no peer-reviewed evidence evaluating the impact of REIT investment on nursing home staffing, according to authors of the study.

Generally, larger deals resulted in increases to LPN and CNA staffing, and no changes to RN staffing. Smaller deals appeared to replace RN staffing hours – more expensive, skilled care – with less skilled, less expensive clinicians, authors wrote.