Over the past decade, real estate investment trusts (REITs) have aggressively purchased thousands of healthcare properties, including nursing homes and assisted living facilities, exerting significant influence over their operations. A KFF Health News investigation reveals that despite their financial success, many of these facilities suffer from poor staffing, safety violations, and substandard care, often unnoticed by regulators. High-profile lawsuits, including a recent $92 million punitive damages award against a REIT, highlight ongoing concerns about resident safety and neglect.

While REITs argue they are merely property owners, court records and lawsuits suggest they have substantial control, including selecting management companies and monitoring operational metrics. The lack of transparency and oversight has enabled some facilities to neglect residents’ needs while generating billions in rental income. Experts criticize this model, emphasizing that profits are often prioritized over quality care, leading to tragic outcomes for vulnerable seniors.