Investigative Reporting into Private Capital and Long-Term Care Providers
This information is provided by national senior living association partner, Argentum
It is anticipated that USA Today will soon publish an investigative report on the impact of COVID-19 in skilled nursing facilities and the role of REITs. This may be part of a series of articles; at this time, Argentum does not anticipate the article to focus on assisted living providers.
It is possible the series may touch on the Biden Administration’s recently announced efforts to study and overhaul nursing home regulations, which were briefly mentioned by President Biden in last week’s State of the Union address. The president specifically called attention to high COVID-19 fatality rates in nursing homes, staffing shortages and lower care outcomes for residents at private equity-owned nursing homes. According to the fact sheet released last week, the proposals do not cover assisted living and federal regulators have stated in guidance that CMS “does not have regulatory authority over care settings such as Assisted Living Facilities.”
Argentum has closely monitored investigations by Congress and the press on the impact of COVID-19 on the sector, including as it specifically relates to the role of private investment. As you may recall, in July 2020, a Congressional report and accompanying legislation was introduced to make conditional that the receipt of any funding from the federal government, such as provider relief funds, would immediately trigger reporting by assisted living providers. That legislation stalled at the end of the last Congressional session, although we are continuing to monitor for any additional efforts in Congress.
We recommend not to bring any additional media attention to this issue. If you receive an inquiry from the press related to this article or more broadly on the role of private capital in the industry, please don’t hesitate to reach out for guidance.