Private equity firms in New York state promise their investments in home care agencies will improve the industry.\u00a0<\/p>\n
But in reality, they perpetuate poor working conditions for workers by continuing the exploitation that is prevalent across the industry, from low wages and wage theft to managerial negligence and unsustainable work hours, according to a new study from the\u00a0Worker Institute<\/a> at the ILR School.<\/p>\n The findings have significant implications for New York, as private equity firms gained control of half of the state\u2019s home care in 2025, according to a related Worker Institute report released in June, the co-authors said.<\/p>\n \u201cThey\u2019re taking advantage of an industry where the workforce, predominantly women of color, is devalued, poor working conditions are the norm and regulation and oversight are weak,\u201d said\u00a0Zo\u00eb West<\/a>, worker rights and equity associate at the Worker Institute and co-author of the study.<\/p>\n The report, \u201cPrivate Equity\u2019s Impact on Home Care Workers and Patients in New York State,\u201d<\/a> examines the working conditions of home care workers at five agencies in New York owned by private equity firms and the implications of the private equity\u2019s management practices on workers\u2019 job quality, well-being and ability to provide quality care.<\/p>\n In addition to continued worker exploitation, the report finds that private equity owners, who buy up small agencies and consolidate them into larger chains, increase the use of technology and automation in ways that depersonalize communication between workers and clients. This exacerbates existing problems of managerial neglect, including a lack of communication, coordination and responsiveness to workers when they have serious problems serving clients in their homes.<\/p>\n Finally, the research found that other financial actors \u2013 including venture capital firms and managed care organizations \u2013 drive down labor standards and extract profits in New York\u2019s Medicaid home-care system.<\/p>\n \u201cThe provision of home care is an essential public service for aging individuals and people with disabilities, and it is predominantly paid for with publicly financed taxpayer dollars,\u201d said\u00a0Anne Marie Brady<\/a>, senior extension associate, worker rights and equity, in the Worker Institute and co-author of the report. \u201cThe fact that, over time, federal and state policies have been designed in such a way as to allow private \u2018financialized\u2019 actors, like private equity firms, to provide this essential public service for financial gain through profit-seeking shareholders is an irresponsible use of precious public dollars.\u201d<\/p>\n The report lays out a series of recommendations to address the problems, including:<\/p>\n Enact and fully fund a living wage for home care workers;Convene a state task force to establish sustainable benefits and working hours for home care workers;Protect workers\u2019 rights to organize and unionize;Strengthen support and safety for home care workers;Require agencies to provide in-person training at regular intervals:Enforce existing laws and regulations, while demanding transparency and accountability;Foster the development of mission-driven and nonprofit home care agencies;Curb the extraction of public dollars for private profits; andMake home care funding more equitable.<\/p>\n The report is part of a broader research project, supported by a grant from the Robert Wood Johnson Foundation, exploring privatization and structural racism in home care.<\/p>\n