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Is it important to know who owns a nursing home?

by | Nov 30, 2022 | Nursing Home Abuse And Neglect

When a loved one needs more care than you can provide, you may consider placing them in a nursing home.

Finding the right place takes more than just visiting the site or speaking to the employees. Who owns the nursing home should also be an essential factor in your decision. One significant difference between ownership types is what the owners do with profit.

Non-profit nursing homes

According to AARP, about 25% of nursing homes in the U.S. operate as non-profits. A religious, professional or ethnic group may own a non-profit facility. Fees charged to the residents help pay the daily care expenses, and any profit remaining after paying for operating expenses goes back into the facility. Companies organized this way tend to have the ability to keep more staff and invest more money into patient care. Overall satisfaction and quality of care tend to be higher.

For-profit nursing homes

Nursing homes designed to produce a profit for their shareholders tend to spend less money on their patients. The companies do this by limiting the number of staff, decreasing salaries and paying the minimum amount necessary per patient. Lower staff leads to less attention to the patients increasing the chance of bed sores and other ailments. While not all for-profit facilities spend in this manner, financial transparency should be a priority with any nursing home you consider.

Nursing home ownership impacts how the business operates. Finding the right fit for your loved one should include reviewing the ownership structure, so you know how the facility works.