Nursing Home Profits – Where Do the Billions of Dollars Go?
Sacramento elder abuse attorney Sean Laird reflects on the recent article released that examines where or to whom the billions of dollars paid to nursing home or “skilled nursing facilities” actually go. Recently, a report from Consumer Voice titled “Where Do the Billions of Dollars Go? A Look At Nursing Home Related Party Transactions” evaluated that very question. When your loved one suffers neglect, one of the first things that families offend say is, “we were paying thousands of dollars a month, for what?!”
As an Elder Abuse Attorney in Sacramento, I am committed to fighting for the rights of elderly residents who have suffered from neglect and abuse in nursing homes. That’s why I want to bring to your attention a new report from Consumer Voice titled “Where Do the Billions of Dollars Go? A Look At Nursing Home Related Party Transactions.”
The report is an eye-opener as it documents how nursing homes funnel billions of dollars through related party companies with little to no oversight by the Centers for Medicare & Medicaid Services (CMS). These related parties are companies that the nursing homes own, and they use them to potentially hide profits and give the illusion that their facilities are not profitable.
As a result, residents often face inadequate staffing and poor care, despite the massive amounts of money being funneled through these related parties. The report found that nursing home owners and operators routinely pay their related parties more than the reported costs, in some instances by nearly 1200%. This practice makes nursing homes look less profitable, while in reality, profits may be hidden in these transactions.
Nursing Home Profits Hidden in Similarly-Owned-Company Transactions
The report also found that cost reports do not capture enough information on related party transactions to enable CMS to fulfill its regulatory obligation to ensure that taxpayer dollars are going towards care and not profits for owners and operators. Despite the constant refrain from the nursing home industry that they need more money, our report shows that billions of dollars go unaccounted for each year and are potentially being siphoned off to the profits of nursing home owners and operators.
In our analysis of the report, we offer solutions to the lack of transparency and accountability for how nursing home dollars are spent. CMS must take action now to ensure that taxpayer dollars are spent on care, and the safety and well-being of nursing home residents are assured. With your help, we can make sure that nursing homes are held accountable for their actions, and residents receive the care and attention they deserve. You need an attorney who understand where the money goes and the impact you need to have to make a change.
As a Sacramento elder abuse attorney, I am appalled by these findings. That’s why I am committed to holding nursing homes accountable for their actions and fighting for the rights of elderly residents who have suffered from neglect and abuse. If you or someone you know has been a victim of elder neglect or abuse, don’t hesitate to contact me. Together, we can make a difference and ensure that nursing home residents receive the care and attention they deserve.