Private equity firms have increasingly purchased group homes and services for individuals with disabilities, raising concerns among regulators and advocates. A report from the Private Equity Stakeholder Project highlights how such firms prioritize profit maximization, often at the expense of care quality. Recent incidents, such as violations at Sevita's NeuroRestorative branch, emphasize the dangers of neglect and abuse under private equity ownership. State regulators, while documenting patient harm, struggle to enact substantive changes or protections for disabled individuals.
Private equity firms are, more than many other types of investors, laser-focused on maximizing their cash flow, often trying to double or triple their investment over a relatively short period of time.
The way that private equity firms will often do that is to cut costs. For companies that provide essential services for people with disabilities, those cuts can have really harmful impacts on people's lives.
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