• Wed. Nov 29th, 2023

    Unscrupulous Tactics and Financial Mismanagement: The Dark Side of For-Profit Nursing Home Chains

    BySharna Bass

    Nov 20, 2023
    Unscrupulous Tactics and Financial Mismanagement: The Dark Side of For-Profit Nursing Home Chains

    A recent controversy surrounding Viviant Healthcare in Bristol has shed light on the larger issue of for-profit nursing home chains gaming the system and leaving vulnerable residents in distress. While Sam Goldner and Goldner Capital Management have been major players in the nursing home industry, their facilities have faced closures and legal battles with creditors.

    Unlike what the company claims, Goldner’s actions reveal a disregard for the welfare of residents and a pattern of financial mismanagement. Despite purchasing Viviant in late 2020, Goldner has left a trail of unpaid vendors, amounting to nearly seven figures. This negligence has led to a decrease in staff, food shortages, and reduced care quality, resulting in the suffering of residents.

    The Centers for Medicare and Medicaid Services (CMS) recently terminated reimbursement for Viviant, leaving families scrambling to find alternative accommodation for their loved ones. This situation highlights a more extensive issue within the nursing home industry: the manipulation of the system by for-profit chains, especially those affiliated with private equity.

    Private equity firms exploit loopholes in the payment system, allowing them to profit while neglecting their responsibilities. Practices such as “related party transactions” enable owners to divert funds away from the nursing home, leaving CMS unaware of their destination. This lack of financial transparency creates an environment where vendors are unpaid and resident care is compromised.

    To address this problem, greater financial transparency and stricter staffing level requirements are necessary. The National Consumer Voice for Quality Long Term Care advocates for changes like requiring a minimum of 4.2 hours of direct resident care per day and thorough documentation of transactions between companies. These measures would hold nursing home chains accountable and prevent the maltreatment of residents.

    Fortunately, there is hope for improvement. CMS recently released a final rule aimed at increasing transparency by disclosing ownership information for each nursing home. This increased scrutiny and public awareness can help to expose the unethical practices of for-profit chains, ultimately driving change within the industry.

    Frequently Asked Questions (FAQ):

    Q: What issues have arisen at Viviant Healthcare in Bristol?
    A: Viviant Healthcare has faced closure and legal disputes with creditors, leaving families searching for alternative care options for their loved ones.

    Q: Why are for-profit nursing home chains being criticized?
    A: For-profit chains, particularly those associated with private equity, are accused of manipulating the system and neglecting their responsibilities to residents and vendors.

    Q: What is meant by “related party transactions”?
    A: “Related party transactions” refer to owners diverting funds away from nursing homes by conducting business with shell companies they control.

    Q: How can this issue be addressed?
    A: Greater financial transparency and stricter staffing level requirements are recommended to hold nursing home chains accountable and improve resident care.

    Q: Is there any recent development in increasing transparency?
    A: CMS recently introduced a final rule that aims to disclose ownership information for nursing homes, promoting greater accountability and public awareness.