METARs have been reporting about the impact of private equity funds buying family homes for cash. This drives up the cost of housing, putting the cost of buying the house out of the reach of many families and raising the rents for those who can’t buy. This has a negative Macro impact on a whole generation of families whose cost of housing is rising even while they are shut out of home ownership.
Another negative impact is caused by private equity-owned nursing homes.
**Nursing Homes Are in Crisis. We Can’t Look Away Any Longer.**
**By Jay Caspian Kang, The New York Times, April 14, 2022**
**In the early months of the Covid-19 pandemic, when the public learned about thousands of deaths in understaffed and poorly run nursing homes around the country, an optimist might have expected extensive and immediate change to that industry. ...** [Nope! Didn’t happen.]
**The administration criticized the “dangerous” trend of private equity firms increasing their investment in the industry from $5 billion in 2000 to more than $100 billion in 2018...Two-thirds of nursing homes are for-profit. ...**
**A lot of public money is going into nursing homes, but there’s no transparency about how those nursing homes are spending taxpayers’ money, or how much of it is going to the nursing home owner because he owns the building and is paying himself a very high rent....If you’re about to put your mother in a nursing home, you need to know who owns this nursing home and how much of the $7,000-a-month check you’re writing is going toward care for your mother.** [end quote]
The Macro impact is on the growing millions of frail elders who will be forced to enter these nursing homes, on their families who are paying a high price and on the government which pays for Medicaid clients (the majority).
High profits for private equity, poor care for the patients.
The cost is astronomical and growing.
Nursing home staff earn $10, $12 an hour — that’s like $20,000 to $28,000 a year. It seems that care would be less expensive and more personal by hiring caretakers in the home. What do METARs with experience say about this?