By John I. Adams, Chairman, TSCL
A new bill proposed in Congress threatens to shake up the healthcare landscape for seniors by cutting government funding from facilities backed by private equity (PE) funding. Called the Patient Safety and Whistleblower Protections Act and introduced by Senator Chris Murphy (CT) and Representative Mary Gay Scanlon (PA-05), the bill’s authors claim it would essentially ban PE ownership of hospitals and nursing homes by taking away the federal funds they depend on.
Why would Congress want to keep PE funding out of seniors’ healthcare? According to a statement from Senator Murphy’s office, patients living in PE-operated facilities face higher patient mortality rates, reduced services and supplies, and higher costs due to the PE industry’s focus on improving short-term profits. The PE industry has already received plenty of criticism for purchasing thousands of single-family homes across the country and allegedly driving up costs, with President Trump intervening to stop the practice with a January 2026 executive order.
When it comes to healthcare, though, eliminating PE backing from the industry might prove less impactful than we’d imagine in the short term. As reported by McKnights, a news organization covering long-term care facilities, the American Health Care Association and National Center for Assisted Living estimate that only 5 percent of nursing homes are run by PE firms. This means some facilities might close or get sold off to new owners with a different type of financial backing if the bill passes into law, but most would remain unaffected.
However, the bill’s sponsors argue that this measure is necessary to protect seniors over the long term. They claim the Medicare cuts from last year’s One Big Beautiful Bill Act will cause nationwide financial turmoil for healthcare facilities and open the door for PE firms to swoop in and acquire them as distressed assets.
At TSCL, we’re watching this bill develop closely. What matters most to us are outcomes for patients and what our supporters, seniors like you, prefer. Please take our poll on this subject. Your participation will be invaluable for representing the wishes of older Americans to Congress on this vital issue.
