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⭒ New Developments

Care Suffers as More Nursing Homes Feed Money Into Corporate Webs

Care Suffers as More Nursing Homes Feed Money Into Corporate Webs. A January 2, 2018 New York Times article produced with Kaiser Health News examines how nursing home chains reap profits by contracting with companies they own or control. Nursing home owners are using this method – which accounted for $11 billion in spending in 2015 – to siphon off funds intended for care and staffing.  While the quality of care suffers under these arrangements, operator profits soar in a way that does not show up on their nursing home accounts. The article reports that the California state auditor is examining related party transactions by Brius Healthcare Services, a nursing home chain owned by Shlomo Rechnitz.