AHCA/NCAL Issues Statement Ahead of House Ways and Means Oversight Subcommittee Hearing on Private Equity in U.S. Health System Released:March 24, 2021 AHCAPressOffice@ahca.org Page ContentWASHINGTON, D.C. – The American Health Care Association and National Center for Assisted Living (AHCA/NCAL), representing more than 14,000 nursing homes and assisted living communities across the country that provide care to approximately five million people each year, released the following statement ahead of the U.S. House Ways and Means Oversight Subcommittee’s hearing, “Examining Private Equity’s Expanded Role in the U.S. Health Care System.” The statement is attributable to Mark Parkinson, president and CEO of AHCA/NCAL: “The COVID-19 pandemic affected 95 percent of nursing homes, regardless if they were nonprofit, for-profit or owned by private equity firms. In the long term care sector, private equity companies own less than 10 percent of nursing homes, and large investor acquisitions are decreasing. However, the small number of nursing homes that have turned to alternative revenue sources underscore the financial and staffing crisis that nursing homes are facing due to the fact that Medicaid does not cover the cost of care. “Chronic Medicaid underfunding and unfunded government mandates have pushed many nursing home providers to the brink, making the average nursing home barely break even. Unfortunately, the pandemic has only worsened these financial challenges. For a small number of providers, private equity firms have been the only viable solution to prevent them from permanently closing their doors. “Rather than focus on ownership structure, we should focus on solutions that will increase our nation’s investment in long term care. AHCA/NCAL partnered with LeadingAge on the Care For Our Seniors Act, a package of reforms that will strengthen our profession and ensure the best outcomes for residents and staff. We remain committed to working with Members of Congress on meaningful changes that will improve the overall quality of care in our nursing homes." ABOUT AHCA/NCAL The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) represents more than 14,000 non-profit and proprietary skilled nursing centers, assisted living communities, sub-acute centers and homes for individuals with intellectual and development disabilities. By delivering solutions for quality care, AHCA/NCAL aims to improve the lives of the millions of frail, elderly and individuals with disabilities who receive long term or post-acute care in our member facilities each day. For more information, please visit www.ahcancal.org.