Forbes, July 31, 2026
By Peter Ubel, a physician and behavioral scientist at Duke University Community hospitals and nursing homes face an insidious threat: “related-party earnings,” where owners deliberately bankrupt facilities for profit. This involves private equity firms buying a hospital, then selling its land to a related company at a discount, only to rent it back at inflated rates. Owners also control “independent” management firms, siphoning funds until the facility fails, while their related entities profit. A New England Journal of Medicine study revealed two-thirds of Illinois nursing home profits were redirected this way, exemplified by Genesis Healthcare’s bankruptcy. Experts urge states to demand ownership transparency, audit for profit siphoning, and pursue legal action against fraudulent financial claims to protect these vital institutions.
Read the full article: How Self-Dealing Is Bankrupting Hospitals And Nursing Homes at Forbes.