Category Archives: Nursing.Homes

Goshen nursing home’s troubles reflect larger for-profit trend

Source: Daniel Axelrod, Times Herald-Record, August 12, 2018

Nurses picketed, state Department of Health inspectors swarmed, and complaints streamed to local elected leaders and the Times Herald-Record in the months after for-profit owners bought the former Elant nursing home in Goshen. Now, nearly a year after the home became Sapphire Nursing and Rehab at Goshen, a Westchester law firm has filed a scathing lawsuit against the business, and the attorneys are seeking class-action status. The plaintiffs, a current resident of the home and the estate of a deceased resident, accuse the owners of slashing staff so deeply that residents often sat in their own waste, begging visitors for bathroom help, meals and care.

… Sapphire’s troubles under its new leadership reflect a larger trend, according to nursing home experts. Facing challenges like inadequate government reimbursements and a lack of self-funded patients, New York’s nonprofit nursing home companies are increasingly selling to commercial operators that cut staff to boost revenue. Trouble began in Goshen when Brooklyn investors Richard Aryeh Platschek, Esther Farkovits, Machla Abramczyk and Robert Schuck acquired the nursing home and three others in Beacon, Newburgh and Wappingers Falls from nonprofit Elant Inc. in September. They immediately began shedding staff in Goshen, which led to a “failure to maintain a safe, clean, comfortable and homelike environment,” according to the state DOH and a state-ordered corrective action plan. As a result, residents were left unattended for hours, medication errors occurred and patients were not kept hydrated, properly nourished and infection-free, according to the DOH. …

Manlius nursing home residents go without food, medicine; NYC owner fined

Source: James T. Mulder, syracuse.com, July 10, 2018

A Manlius nursing home without enough staff to clean, feed and toilet residents has been fined $22,000 by the state. An inspection of the Onondaga Center for Rehabilitation and Nursing conducted in February found the facility was so short-staffed some residents did not get insulin and other medications on time or at all. The 80-bed home, formerly known as the Crossings, was bought last year by Centers Health Care, a New York City-based for-profit chain that owns 53 nursing homes in New York, New Jersey and Rhode Island. The state Health Department recently posted information about the fine on its website. … The report cited the facility for 24 deficiencies, at least three of which resulted in harm to residents. Many of the problems were repeat deficiencies. … Three certified nurse aides during the day and one to two aides at night typically cared for 35 to 40 residents. … Some residents did not get lunch until after 1:30 p.m. because there were not enough staff to deliver meal trays. … One resident had to be hospitalized after becoming dehydrated because there was no registered nurse on duty to provide fluid intravenously. … Seven residents did not get proper care to heal and prevent bed sores.

… The nursing home made a profit of $1.8 million in the first eight months of 2017 before it was acquired by Centers Health Care, according to SNFdata, a company that reports nursing home financial data. Financial results since Centers Health Care took over were not available. … The state recently fined another one of the chain’s nursing homes in Queensbury near Lake George $10,000 after a resident died in a nursing home van accident last year. …

Preferred Care settles for $540,000 in whistleblower upcoding case

Source: Elizabeth Leis Newman, McKnight’s, July 6, 2018

Nursing home chain Preferred Care agreed to settle False Claims Act charges for $540,000, the Department of Justice has announced. Federal officials accused the company of upcoding Medicare beneficiaries between July 2012 and October 2017, and of providing “worthless services” at Kentucky’s Stanton Nursing and Rehabilitation Center for three years. … Preferred Care, which owns or operates 100 skilled nursing facilities, declared bankruptcy last November. A bankruptcy court approved the settlement on June 26. As part of the settlement, the company does not have to admit to liability. …

After issues with Aramark, Broome County continues search for food service provider

Source: Monika Hammer, WBNG, April 10, 2018

Broome County Executive Jason Garnar says the process is underway to find a new service provider for the Willow Point Nursing Home. In February, Garnar announced he would cut ties with a company that provides food service to three Broome County operations. “We’ve had some major issues with the food service provider Aramark and we decided that we want to disengage from the contract for several reasons,” Garnar said. …

Related:

Broome County officials knew of Aramark issues in August, thought they could work it out
Source: Hannah Schwarz, Press & Sun-Bulletin, April 2, 2018

Problems with Aramark’s food service at Willow Point Nursing Home surfaced as early as 2016 — and several Broome County officials were aware of issues as early as August 2017 — but the county didn’t sever its contract with the company until February because officials believed Aramark could remedy the issues. Emails from former Willow Point Interim Director Denise Johnson obtained by the Press & Sun-Bulletin/pressconnects.com, as well as emails between Deputy County Executive Kevin McManus and Aramark Regional Manager John Sidorakis, obtained via a Freedom of Information Law (FOIL) request, show tray line service had been “problematic since ‘day one,'” and the county had been requesting reimbursement for more than eight to nine months. In a July 31 email, Johnson, who left the interim position in September when current director Ryan LaClair took over, said Aramark was requesting $100,000 in additional reimbursement from the county in what she believed was a misinterpretation of the contract. She also said Aramark was providing “untimely” meal service that was not expected to do well at the facility’s upcoming Department of Health inspection, and that Aramark had yet to set up steam table service. …

Aramark details plans for Broome County’s meals
Source: John Roby, Press and Sun-Bulletin, January 14, 2016

Aramark officials detailed the company’s plan to take over Broome County’s food service operations to members of the legislature Thursday in the first public outline of the $3.4 million proposal. … The savings would result largely from the removal of 41 full-time and 34 part-time employees of Central Kitchen and the Willow Point dietary unit from the county payroll. Aramark will employ up to seven inmates to prepare meals — under company and sheriff’s supervision — at the jail, while company employees will cook and serve meals at the nursing home and those for delivery. … Aramark will charge Broome a per-meal fee that is set to increase each year of the five-year deal. Nursing home meals will start at $6.54 and rise to $7.36 in 2020, delivery meals will start at $3.90 and rise to $4.39, and inmate meals will increase from $1.76 to $2.

Continue reading

Workers allege criminal activity at Bridgeport Health Care Center

Source: News12, April 3, 2018
 
Enough is enough. That was the message from the union representing Bridgeport Health Care Center employees. Workers at the facility called attention to what the union alleges is criminal activity by Chaim Stern, the chief financial officer for the privately owned nursing home. Employees claim Stern has failed to pay the staff on time on numerous occasions since June 2017. … “Throughout this ordeal, Bridgeport Health Care Center workers have continued to show up, and do their jobs,” said Sharon Weller, of AFSCME Local 1522.  “That’s because they care about the residents and take pride in their jobs.” …

Even discussing selling a nursing home leads to staff turnover, lower quality of care

Source: Rick Lee, York Daily Record, February 28, 2018
 
From Sweden to Taiwan to the United States, decades of international research has established that privatizing nursing homes results in increased staff turnover and decreased quality of care. Even discussing taking a nursing home out of government hands and putting it into the private sector causes staff turnover to begin, according to sociologist Steven Lopez, now an associate professor at Ohio State University. Twenty years ago, Lopez examined three Pennsylvania nursing homes – one that considered privatization; one that was taken over by a for-profit management company; and a privately owned nursing home documented as having low wages, high employee turnover and poor quality of care. Currently, the York County commissioners are exploring the possibility of selling the county-owned nursing home – Pleasant Acres Nursing and Rehabilitation Center. …

… Russ McDaid, the president and CEO of the Pennsylvania Health Care Association, an advocacy organization for many of the commonwealth’s nursing homes, said that is a problem facing many county-owned homes. … There are some people, McDaid said, who believe they can make a nursing home profitable through enhancing revenues and/or decreasing costs. The obvious places to cut costs is with staff numbers and wages, he said. … Both Adams and Lancaster counties sold their county nursing homes for similar financial reasons that are facing York County. …

Related:

Results mixed for other counties that sold nursing homes
Source: David Weissman, York Dispatch, February 28, 2018

As York County Commissioners consider selling the Pleasant Acres Nursing and Rehabilitation Center, they can look for guidance from plenty of other Pennsylvania counties that have recently sold their nursing homes. A York Dispatch review of state Department of Health records and local news reports from across the state found that at least 18 counties have sold their nursing homes, primarily to for-profit companies, since 2005. York County is one of 18 counties that still owns their own nursing homes, according to the review. … Selling Pleasant Acres, which taxpayers have subsidized to the tune of about $75 million during the past 10 years, has been discussed for many years because of its rising costs. The county has contracted the assistance of Susquehanna Group Advisors to solicit bids for Pleasant Acres, though commissioners insist they haven’t made a final determination to sell the 375-bed facility. Andrisano said she has seen counties reverse course after expressing an interest in selling their nursing homes because of constituent feedback, though it’s rare and she couldn’t recall any specific example. York County administrator Mark Derr said he’s been told 15 companies have expressed some form of interest in the nursing home, and final bid submissions are due March 15. …

Handpicked Cedar Haven owner lost control within months, to county’s surprise

Source: Daniel Walmer, Lebanon Daily News, January 26, 2018

The Lebanon County commissioners took great efforts in 2014 to ensure they sold the county-owned nursing home into good hands – but within months, those hands had been forced out of any involvement with Cedar Haven. Now, the union representing Cedar Haven nurses is involved in a bitter, three-month-old strike with current owner Stone Barn Holdings and its managing partner Chas Blalack. Union leadership says the county commissioners deserve some of the blame for not sufficiently scrutinizing the financial situation of the purchaser when it sold the home. …

Related:

Lebanon County Commissioners letter to Stone Barn Holdings, the group that owns Cedar Haven
Source: Lebanon Daily News, January 26, 2018

The following is a letter from the Lebanon County Commissioners sent Jan. 18 to the owner of Cedar Haven nursing home, Chas B. Blalack with Stone Barn Holdings. …

Two months in: When will the Cedar Haven strike end?
Source: Daniel Walmer, WITF, December 21, 2017

The Cedar Haven Healthcare Center nurses’ strike reached its two-month point this week with little fanfare from the union – but behind the scenes, there have been nurses crossing the picket line, an aborted attempt at a negotiation and business dealings by Cedar Haven’s owner. … Here are the basics: There is still no contract agreement on the horizon. The parties met for a mediated negotiation session on Dec. 4, but Cedar Haven owner Stone Barn Holdings rejected it despite “movement” on the part of the union, said AFSCME Council Director Steve Mullen.

Continue reading

Editorial: Self-dealing by nursing home owners threatens patient care

Source: Editorial Board, St. Louis Post-Dispatch, January 14, 2018

The outsourcing of logistical support services, which became commonplace in the U.S. military in the 1990s and later was adopted by state prison systems, has now come to dominate the nursing home industry. And while nursing homes, unlike the military or prisons, are not part of federal or state governments, Medicaid pays for the care of 62 percent of all nursing home patients, amounting to $55 billion in 2015. … In a remarkable story published Dec. 31, Kaiser Health News reported that the owners of nearly three-quarters of the 15,600 nursing homes in the United States buy a wide variety of goods and services from companies in which they have a financial interest or control. Nursing home owners can rent the land to themselves at above-market rates, or own the staffing company that provides nursing care and management. These business dealings, known as related-party transactions, offer efficiencies that can hold down costs and help minimize taxes. … In the nursing home industry, however, with its reliance on taxpayer dollars, related-party transactions can also encourage insider dealing, maximizing profits for the outside vendors while siphoning off funds needed for patient care and staffing. If a nursing home gives a no-bid contract for, say, linen services, to a firm controlled by the nursing home’s owners, it often pays inflated prices. … For nursing home owners, a complex web of related-party transactions can offer a shield against lawsuits or governments seeking restitution for Medicaid overpayments. This is outrageous. …

Champaign County Board votes to put nursing home up for sale

Source: Tom Kacich, News-Gazette, January 9, 2018
 
Champaign County Board members voted Tuesday night to put the county nursing home up for sale.  By a margin of 13-8, with Democrats Pattsi Petrie, C. Pius Weibel and Shana Jo Crews joining all 10 Republicans, the board voted to issue a request for proposals from private operators to purchase the county-owned facility in east Urbana. … Among the terms to any sale of the nursing home: … — The purchaser would assume the existing collective-bargaining agreement between the nursing home and the AFSCME union.  — The purchaser must agree to rehire all existing employees who pass a background check, not terminate 10 percent or more of the employees within the first 60 days following the closing date and not 20 percent or more of the current employees during the first six months after the closing date, all at their current salary levels with benefits similar to those currently received. …

Related:

County board to get first look at proposal for sale of nursing home
Source: Tom Kacich, News-Gazette, October 10, 2017
 
Champaign County Board members will get their first review tonight of the proposal for the sale of the county-owned nursing home.  The agenda for the board’s committee-of-the-whole meeting includes an item calling for the release of a request for proposals for a privately owned firm to buy the 12-year-old facility in east Urbana. If the board approves the RFP this month, the sale of the home could be completed this winter. … The proposed request for proposals for the sale of the facility carries a number of stipulations: … That the purchaser assume the existing collective bargaining agreements at the home with the AFSCME employee union. …

Patient advocates back county ownership of nursing home
Source: Debra Pressey, The News-Gazette, March 29, 2017

Selling the Champaign County Nursing Home could lead to staff reductions, poorer care and service cuts, a group of advocates for medical patients and retirees contended. Gathering less than a week before voters will be asked to weigh in on two public policy questions — whether they support selling or disposing of the financially ailing nursing home or a tax increase to help keep it going — the Illinois Alliance for Retired Americans, Champaign County CARE, Champaign County Health Care Consumers and others Wednesday urged voters to get behind the option that will keep the nursing home in the county’s hands. Research from Center for Medicare Advocacy, Kaiser Family Foundation and others have demonstrated that nursing home ownership matters when it comes to patient care and staffing levels, said Champaign County Health Care Consumers executive director Claudia Lennhoff. … “For-profit facilities, particularly those owned by multistate chains, are more likely to reduce spending on care for residents and to divert spending to profits and corporate overhead,” the Medicare center said in a report. … A 2011 analysis of the 10 largest for-profit nursing home chains found they had the lowest staffing levels and highest levels of deficiencies between 2003 and 2008, Lennhoff said. She also said a new owner — especially a larger and/or for-profit one — who would fill more beds at the nursing home, even increasing the Medicaid census in the process, could be a “recipe for disaster.”

… Lennhoff said Champaign County doesn’t have to look any farther than neighboring Vermilion County to see what can happen when a county disposes of its nursing home. After the county sold its Vermilion Manor Nursing Home to FNR Healthcare Group in 2013, the county was caught by surprise when 39 employees were cut by the new owner, she said. Now called Gardenview Manor, the Danville nursing home was hit by the Illinois Department of Public Health in January for two “type A” violations, which mean “a substantial probability that death or serious mental or physical harm will result or has resulted” in the past three months.

Exclusive: Nursing Home Sought Help From Lobbyist Friend Of Governor

Source: Jim Defede, CBS Miami, November 3, 2017

State officials intended to permanently shut down the now infamous The Rehabilitation Center at Hollywood Hills in 2014, when a lobbyist with deep ties to Governor Rick Scott interceded on behalf of the man who wanted to take it over, CBS4 News has learned. The role of one of the Governor’s friends lobbying state officials on behalf of Dr. Jack Michel so Michel could obtain the license for the Hollywood Hills nursing home has not been previously reported. The nursing home is now drawing intense scrutiny following the deaths of more than a dozen residents after its air conditioning system lost power during Hurricane Irma. … In 2014, Michel wanted to buy the nursing home, whose owner at the time, Karen Kallen-Zury, had just been convicted of Medicare fraud and was sentenced to 25 years in prison. … Political leaders have questioned whether Michel should have been granted a license given the fact that Michel and two former business partners paid $15.4 million to the federal government to settle fraud claims. …

Related:

Hollywood nursing home should never have been licensed, state senator says
Source: Bob Norman, Local 10 News, October 26, 2017

The U.S. Justice Department hit Michel with civil Medicare fraud charges in 2004, alleging he received $70,000 each month in kickbacks to funnel nursing home patients into Larkin Community Hospital in South Miami for medically unnecessary procedures. … Michel eventually purchased the Larkin hospital (beginning with what the feds alleged appeared to be sham transactions) and, according to the complaint, began paying to other doctors for more bogus Medicare referrals. … Farmer says the fraud described in the Michel complaint has become all too common. … Michel and his business partners — including Chicago Rabbi Morris Esformes and his son, Philip — paid $15.4 million to settle the fraud case while admitting no wrongdoing. Published reports show that the Esformeses have a long history of nursing home violations going back decades in Chicago and other cities, including one case in 2001 involving the deaths of four women during a heat wave in St. Louis. Criminal investigations netted no charges in that case, but the nursing home was hit with a $275,000 civil judgment in one suit while three others ended with undisclosed settlements. But after paying the $15.4 million settlement to the federal government, both Michel and the Esformeses simply continued in the business of running nursing homes and hospitals. …

Hurricane Irma: Hospital linked to nursing-home deaths was paid $48M to care for Florida prisoners
Source: Arek L Sarkissian, Naples Daily News, September 26, 2017

The owner of a Florida nursing home whose 11 residents died after Hurricane Irma has benefited for years from millions of dollars in government contracts despite repeatedly running afoul of state and federal regulators. Dr. Jack Michel, owner of Rehabilitation Center at Hollywood Hills, owns a Miami hospital that has received $48 million in taxpayer money since 2006 to treat state prisoners. The payments to Larkin Community Hospital started the same year Michel settled a federal fraud lawsuit that accused him of bilking taxpayers. They continued after the state barred one of his assisted-living homes from taking new patients. And state officials are giving no indication that the payments will stop now despite Florida Gov. Rick Scott’s comments that the owner is unfit to care for patients after deaths at his nursing home.

Larkin provides the prison hospital care under no-bid agreements that the Florida Department of Corrections approved, according to agency contract and finance records. The hospital has served as a subcontractor to the state’s prison health care vendors with approval from corrections officials. Eight elderly patients died Sept. 13 after Irma knocked out power at Michel’s nursing home and residents remained for several days without air conditioning. Three other patients died days later after being hospitalized with complications. …