Nursing home neglect and abuse may increase after purchase by private investment firms
According to a report last week published by the New York Times, the risk of nursing home abuse and neglect may increase after a facility is purchased by a private investment firm. These private groups often make cutbacks to maximize revenue, even at the expense of the safety and health of residents. Residents and families can pursue financial compensation through a nursing home lawsuit, but the individual investors are often protected from personal liability for their greedy actions.
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The New York Times analyzed data from more than 16,000 nursing homes in the United States, and compared the problems reported at 1,200 homes which were acquired by for-profit investment firms against those of 14,000 other nursing homes. Reporters found that the nursing homes which were recently purchased by private investment firms provided worse care after the takeover and often made cutbacks which led to levels of care below federal requirements.
Private investment groups are known for buying companies and making changes to turn a quick profit before selling the company. Many firms are now purchasing nursing homes, where they cut costs by reducing the number of registered nurse, provide less employee training, and budget less money for nursing supplies, resident activities and other services.
In recent years, large private investors have purchased 6 of the 10 largest nursing home chains, accounting for over 10% of the total beds in the United States. According to the Times, in 2005 the investment companies earned approximately $1,700 per resident and, on average, were 41% more profitable than the average facility.
Privately acquired nursing homes ranked below the national standard in 12 of 14 qualifying areas. Many of these facilities were above the national average before being acquired by the investors. However, investment groups found that providing adequate care did not generate enough money, so resources were cut.
When proper staffing levels are not maintained and inadequate resources are available, minor problems can escalate into life threatening injuries. Bedsores, dehydration/malnutrition and prescription errors are common nursing home problems associated with insufficient staffing, training and supervision.
While problems can happen in any nursing home, the New York Times report indicates that there is a 19% higher rate of complaints in investor-owned nursing homes than other nursing homes reviewed. According to the article, owners of these nursing centers can make millions of dollars by cutting healthcare officials, providing inexpensive, substandard care and collecting Medicare and Medicaid benefits.
If you, a friend or family member have suffered a serious injury as a result of nursing home abuse or neglect, financial compensation may be available. The nursing home lawyers at Saiontz & Kirk, P.A. review potential lawsuits nationwide. To review your potential claim with qualified attorneys, request a free consultation.
