Nursing home bankruptcies are increasingly seen as a significant concern for patient care, according to recent research. These financial crises within healthcare providers are associated with worsening outcomes, including more frequent hospitalizations, elevated staff turnover, and increased use of physical restraints, according to the researchers.
The findings stem from a paper published by the National Bureau of Economic Research (NBER) on May 12, 2025, summarized in the Stanford Report. The study, conducted by researchers including faculty affiliated with Harvard Business School, examines healthcare provider bankruptcies with a specific focus on nursing homes.
Impact on Patient Care
The research highlights how bankruptcies can lead to operational disruptions. When nursing homes face financial distress, they often experience staffing challenges, directly impacting care quality. According to the report, these disruptions coincide with increases in patient hospitalizations and the use of restraints, raising concerns about resident safety.
According to the Stanford Report, the study by Samuel Antill, Ashvin Gandhi, Jessica Bai, and Adrienne Sabety shows that financial instability in this sector can lead to significant quality-of-care issues.
Industry Context and Concerns
The nursing home industry has long grappled with financial pressures. Past analyses, such as a study on Texas nursing facilities, underline the commonality of bankruptcies and their potential impact on care.
The Centers for Medicare & Medicaid Services (CMS) has also examined staffing challenges within nursing homes, although specific regulatory measures addressing the aftermath of bankruptcies remain limited.
Broader Implications
This research carries national implications, spotlighting vulnerabilities within long-term care. As healthcare providers navigate financial instability, the priority remains to safeguard patient well-being amidst these economic challenges.
The recent study draws attention to the pressing need for strategies to mitigate the negative effects of financial strain on patient care within the nursing home sector.
