Nursing Home Care Suffers as Profits Rise for Corporate Owners
According to a malpractice lawsuit brought against Allenbrooke Nursing and Rehabilitation Center, a scarcity of resources including a $2 million deficit on its books in 2009 and a shortage of nurses and aides is at least partially to blame. “Sometimes we’d be short of diapers, sheets, linens,” one nurse testified.
Why is it then that same year, $2.8 million of the facility’s $12 million in operating expenses went to a constellation of corporations controlled by two Long Island accountants who, court records show, owned Allenbrooke and 32 other nursing homes?
It is because the two accountants owned other companies that provided Allenbrooke physical therapy, management, drugs and other services, from which the owners reaped profits, according to court records. Nursing homes and related businesses in separate limited liability corporations and partnerships have gained popularity for their ability to protect for-profit nursing home owners if the government tried to recoup overpayments or if juries levy large negligence judgments against them. Unfortunately, nursing home care is ultimately what suffers though.