Buying Spree By Out-of-State Nursing Home Chains A Rising Trend Linked To Declining Quality In Massachusetts
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A Boston Globe Spotlight investigation found that nine nursing home chains from New York and New Jersey expanded their Massachusetts holdings from 12 facilities in 2019 to 61 by 2025. Eight chains saw average federal star ratings decline after acquisition, while state regulators had not rejected an acquisition application or revoked a nursing home license in seven years, according to the investigation.

A Boston Globe Spotlight investigation found that nine nursing home chains based in New York and New Jersey expanded their Massachusetts holdings from 12 facilities in 2019 to 61 by 2025, while average federal star ratings fell at facilities owned by eight of the chains. The findings raise questions about care quality and state oversight as out-of-state operators take on a larger share of the state’s nursing homes.

The investigation found that the nine chains bought at least five Massachusetts nursing homes apiece between 2020 and 2025. Together, they now operate about one-fifth of the state’s nursing homes. The Globe reviewed federal ratings, state and federal records, financial reports, lawsuits and inspections, and interviewed employees, residents and family members.

RegalCare and its CEO, Eli Mirlis, were among the operators examined. The company acquired 12 nursing homes in Massachusetts and at least 29 across five states, including facilities that had held high ratings. The Globe reported that a Taunton facility and a Quincy facility each fell from five stars to one star; the Taunton home’s decline occurred within three years.

At the Taunton property, overall operating spending fell 19%, according to the Globe. Registered nurse hours dropped by more than half, and licensed practical nurse hours by more than a third. Nursing services spending declined by $530,000 between 2021 and 2025, while rent paid to a separate company owned by Mirlis rose to $522,000. In 2025, the property paid $1.6 million to related companies, about 16% of its operating expenses, the investigation found.

At a glance
reportWhen: Investigation published in September 20…
The developmentA Boston Globe investigation linked the rapid expansion of out-of-state nursing home chains in Massachusetts with declining facility ratings and examined the state’s oversight of acquisitions.

Care Ratings Fall After Acquisitions

The findings matter to residents and families because federal star ratings and staffing levels offer indicators of conditions at facilities, though they do not by themselves establish why care changed. The reported declines at eight of nine chains point to a pattern warranting scrutiny as ownership shifts, particularly where staffing fell alongside overall spending.

The financial figures also raise questions about how nursing home resources are used. The Globe’s reporting describes reduced spending on nursing services at the Taunton home alongside payments to related companies. Those figures document changes in spending; they do not, on their own, establish that any particular payment caused a decline in care.

Massachusetts oversees about 340 nursing homes and has authority to reject buyers considered unsuitable, according to the report. The investigation found that the agency had not denied an acquisition application or revoked a nursing home license in seven years. That record puts attention on whether the state’s review powers and newer rules can identify risks before ownership changes are approved.

Massachusetts Ownership Shift

The investigation describes a post-pandemic market in which out-of-state chains expanded their presence through acquisitions. The nine chains examined are based in New York and New Jersey. Their combined Massachusetts holdings grew by 49 facilities from 2019 to 2025, reaching 61, the Globe reported.

RegalCare’s CEO, Mirlis, had his New Jersey nursing home administrator license permanently revoked in 2018 after state authorities found he had committed fraud related to continuing education requirements, according to the Globe. The investigation reported that the revoked license was not disclosed on applications for Massachusetts nursing homes.

Separately, RegalCare and two executives agreed to pay $1 million to resolve allegations that the company submitted false Medicare and Medicaid claims for medically unnecessary rehabilitation therapy, Skilled Nursing News reported. The payment resolves allegations; it is not a finding here that the allegations were proven. The Globe also reported that a related therapy company had earlier settled for $315,000.

“State law historically did not authorize regulators to consider an operator’s out-of-state record.”

— Massachusetts Health Commissioner Robbie Goldstein, speaking to The Boston Globe

Limits of the Available Findings

The investigation reports associations between acquisitions, falling ratings and cost reductions, but the material provided does not establish that ownership changes alone caused each facility’s rating decline. Ratings can reflect multiple aspects of a facility’s performance, and the figures cited do not describe every home or every period after acquisition.

It is also unclear from the source material how Massachusetts has applied the expanded authority to consider operators’ out-of-state records, or whether it has changed acquisition decisions. The state’s seven-year record of approvals and licensing actions is reported by the Globe; the material provided does not include a response from regulators on individual cases.

The Medicare and Medicaid matter involving RegalCare was resolved through an agreement to pay, as reported by Skilled Nursing News. The source describes allegations, not a court finding that the company submitted false claims. The full terms of that agreement are not included in the supplied material.

How State Reviews May Change

Massachusetts regulators can now consider an operator’s out-of-state record under a law enacted two years ago, Commissioner Goldstein told the Globe. The source material does not say what additional review steps the state has adopted or identify a deadline for further regulatory action.

Future acquisition reviews, facility inspections and federal star-rating updates may show whether regulators use the expanded authority and whether conditions change at homes acquired by the chains. The available reporting does not specify a next hearing, enforcement action or scheduled state review.

Key Questions

How many Massachusetts nursing homes do the out-of-state chains own?

The nine New York- and New Jersey-based chains owned 61 facilities by 2025, up from 12 in 2019, according to the Boston Globe investigation. That represented about one-fifth of the state’s nursing homes.

Did ratings decline at every chain’s facilities?

No. The investigation found that eight of the nine chains saw their facilities’ average federal star ratings decline after acquisition. It did not report a decline for all nine.

What happened at the Taunton nursing home?

The Globe reported that the Taunton facility’s rating fell from five stars to one within three years. It also reported lower operating spending and fewer registered nurse and licensed practical nurse hours after the acquisition.

What oversight powers does Massachusetts have?

The state Department of Health oversees about 340 nursing homes and can reject buyers it considers unsuitable, according to the report. A law enacted two years ago expanded regulators’ authority to consider an operator’s record outside Massachusetts.

Source: rss

This article is for informational purposes only and is not medical advice. Always consult a qualified healthcare professional about your specific situation.
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