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Debate over private equity ownership of nursing homes surfaces at Aging Committee hearing
Summary
Lawmakers heard competing views on SB 13 32, a bill that would prohibit private equity firms and real estate investment trusts from acquiring nursing homes in Connecticut. Advocates and legal aid urged the ban; industry groups warned of unintended consequences and urged narrower measures.
Supporters of SB 13 32 told the Aging Committee that private equity ownership of nursing homes has been associated with lower staffing, poorer inspection ratings and higher civil penalties in other states, and that Connecticut should bar future acquisitions by private equity firms and REITs that prioritize short‑term profit over patient care.
Jean Mills Arana, an elder law attorney with Connecticut Legal Services, testified that private equity ownership models often use layered related‑party fees and rent arrangements that divert funds from resident care into profits for investors. Arana cited research comparing private equity‑owned homes with other homes that found lower inspection ratings, fewer nursing staff and larger federal civil money penalties in the private equity‑owned group.
Mairead Painte…
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