Skilled Nursing News reported New York’s new law limiting nursing home profits. However, large chains manipulate financial documents to look unprofitable so this law will have little effect. The new rules attempt to exclude expenses to any related party transaction or compensation that exceeds fair market value. “Facilities have put profits over care for far
For-profit Healthcare People always complain about universal health care as socialism. They assume a not for profit health care system would negatively affect the quality of care. However, that does not appear to be true. For example, federal data shows that for-profit facilities were 18% less effective with preventing COVID-19 infections than nonprofit or government-run
Sen. Elizabeth Warren intensified her fiery defense of nursing home residents. Senator Warren questioned Genesis HealthCare’s hefty bonus to CEO George Hager. Hager quit after failing the residents during the pandemic. But he took $5.2. million bonus first. The chain has been mismanaged and struggled financially for years. Genesis received about $417 million in state
The Intercept reported on tort reform measures giving liability immunity for nursing home owners and operators. Years of aggressive lobbying and donations have paid off. At least 27 states have implemented liability protections for nursing homes. South Carolina is next unless we speak out. Do nursing homes deserve blanket immunity? The Government Accountability Office released a report
Ownership Matters Vox reported on a new working paper published by the National Bureau of Economic Research that proves greed kills. The new study shows nursing home residents die more often when private equity firms acquire nursing homes. As a nursing home attorney, I have seen how large national for-profit chains cut corners, maintain unsafe staffing,
Greed and Incompetence Despite tens of billions of dollars in federal bailout money, the nursing home industry is in serious jeopardy. Mostly because of greed and incompetence. Many are declaring bankruptcy or restructuring. Some are trying to avoid accountability for bleeding the chains dry. “I think that the REIT model is dead,” Robert Hartman, founder
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