Articles Posted in Staffing

The nursing home industry, often perceived as a sector struggling with financial viability due to reported accounting losses, presents a conundrum when analyzed through the lens of recent financial activities and market trends. Despite these reported losses, the industry has seen a surge in private equity investments and high transaction prices, suggesting a disconnect between reported financials and the actual economic value of nursing home facilities.

One explanation for this paradox is the concept of profit tunneling, where businesses who own nursing homes engage in financial maneuvers to misreport or hide true profits, essentially obscuring the true financial health of the enterprise. This tactic not only complicates the industry’s financial landscape but also raises questions about the quality of care provided in these facilities. With staffing levels directly tied to the quality of care, the financial engineering within the industry can have real-world impacts on patient care and facility operations.

Furthermore, the practice of engaging in related party transactions—where businesses make deals within a network of interconnected entities—complicates the financial transparency of nursing homes. Such transactions can mask the true profitability of these facilities, affecting everything from investment decisions to policy regulations concerning the industry.

“Cost-cutting is to be expected in any business, but nursing homes are particularly vulnerable. Staffing often represents the largest operating cost on a nursing home’s ledger. So, when firms buy a home, they cut staff. However, this business model has a fatal flaw. “Nurse availability,” Gupta and his colleagues wrote, “is the most important determinant of quality of care.”

“The data revealed a troubling trend: when private-equity firms acquired nursing homes, deaths among residents increased by an average of ten per cent.”

Read this compelling article from the New Yorker.

The COVID-19 pandemic is causing major disruptions and serious illness concerns in San Diego County and throughout California. Nursing home residents, many of whom are elderly, are not only in a vulnerable age group when it comes to serious COVID-19 infections, but many nursing home residents also have underlying conditions that put them at greater risk for severe infection and even death. To prevent COVID-19 infections in nursing homes, in addition to providing a high quality of care to avoid nursing home neglect injuries, facilities should in theory be improving on the nurse-to-patient ratios required by the state. 

Yet according to a recent article in NPR, the state relaxed its nurse-to-patient ratios in mid-December 2020, which ultimately means that fewer nursing home patients are getting the level of care they need.

Staffing Problems Often Result in Nursing Home Neglect Injuries 

obed-hernandez-592136-unsplash-copy-212x300Nursing homes in San Diego and throughout Southern California should be on warning that nursing home residents and their families are not willing to deal with understaffing problems that can easily lead to nursing home neglect injuries. According to a recent article in Advance Senior Care, there are 15 nursing homes in the state of California that are now the subject of class action lawsuits “alleging that their owner systematically understaffed them to increase his profits.” While these nursing homes are facing claims for nursing home negligence risks, a recent report from California Healthline stated that approximately 1,400 nursing homes in the country will now have to report lower Medicare ratings as a result of concerns about understaffing.

Southern California skilled nursing facilities are required to have specific staffing numbers in order to prevent patient injuries due to elder neglect. When facilities do not have adequate staff, patients can suffer serious and life-threatening injuries due to neglect alone. What should families in California know about the changes to Medicare ratings and how those might relate to the recent class action lawsuits in the state?

Understaffing Problems Lead to Lower Medicare Ratings for Nearly 1,400 Nursing Homes

josh-appel-423804-copy-300x225Whether nursing home patients reside at a skilled nursing facility in Escondido or elsewhere in California, they now have greater protections against elder abuse and neglect. According to a recent article in the Los Angeles Times, a new California state law requires that patients receive a minimum number of hours of care from certified nursing assistants (CNAs). The law took effect on July 1, 2018, but will patients see an immediate change in the way staffing works at nursing homes across the state? Will staffing increases reduce the rates of nursing home neglect in the state?

Staffing Requirements Stricter, But Will Facilities Meet Those Requirements?

Under the new law, what kinds of staffing requirements are required at nursing homes in Escondido and throughout California? As of July 1, facilities must provide each patient with at least 3.5 hours of direct care every day. This number increased from a previous requirement of 3.2 hours of direct patient care per day. But that change is not the most drastic of the shifts in the law. The significant change is that at least 2.4 of these daily hours of direct patient care must be provided by CNAs.

file451297827287-1-300x225 Whether you have an elderly loved one who lives in San Diego County or elsewhere in California, it is important to understand how elder abuse laws in our state can help to provide compensation for seniors who suffer injuries as a result of abuse and neglect in the assisted living setting. According to a recent report from the North Coast Journal, a California jury awarded $5 million to the family of an elderly woman who died while under the care of Timber Ridge McKinleyville. The jury, according to the article, “found the facility liable for wrongful death and elder abuse.” Of the $5 million jury verdict, $2.5 million in punitive damages was awarded.

Congratulations to attorneys Tim Needham and Michael Thamer for such outstanding work on behalf of this family.

This jury verdict emphasizes the importance of speaking with an experienced San Diego County nursing home abuse lawyer in the event that an elderly loved one sustains serious or fatal injuries resulting from elder abuse or neglect. If you have questions, do not hesitate to contact the Walton Law Firm.

file000356994816Allegations of Elder Neglect and Abuse Resulting in Patient Deaths

According to a recent report from The San Diego Union-Tribune, concerns about elder abuse and preventable injuries in assisted-living facilities in Southern California still loom large. A 2013 special report from The San Diego Union-Tribune highlighted the dangers of nursing home neglect in assisted-living facilities across the state, emphasizing that regulators needed to do more to address serious allegations including but not limited to:

handsIf California nursing home employees go on strike, who will provide care for patients residing in the facilities? Should families of those patients have concerns about nursing home neglect? According to an article in the Marin Independent Journal, sixty nursing home workers went on strike last month in San Rafael following a string of nursing facility violations from government regulators. The strike was aimed at forcing the nursing facility to cease its understaffing practices and to encourage a work environment in which providing a threshold level of care for patients is among the most important logistics of running the facility. Even if such a strike is intended to improve conditions, who cares for patients while employees are on strike?

Understaffing and High Turnover Limits Quality of Care

The recent strike occurred at San Rafael Healthcare and Wellness Center, which is owned by Brius Healthcare Services. With more than 80 facilities in California, Brius is the largest nursing home chain in our state. For the last 18 months, employees of the nursing home have been working without having a contract. Why are employees working without a contract? About a year and a half ago, those workers rejected the terms of a union-negotiated contracted because it did not do enough to deal with the serious understaffing problem at the facility.

ElderCare-1024x571When does a staffing shortage at a nursing home or assisted-living facility become grounds for an elder neglect case? According to a recent article in the San Francisco Examiner, staffing levels at skilled nursing facilities and other residences for elderly Californians “is an ever-expanding problem.” The need for support services continues to grow in the state, yet the demand doesn’t always fit the need.

To be sure, “individuals 85 years and older, the oldest of the old, are one of the fastest-growing segments of the population.” But, does California have the tools it needs to properly care for these elderly residents?

Rapidly Growing Elderly Population

The nursing home industry (and nursing home lawyers) was stunned earlier this year when a Humboldt County jury returned a class action verdict against the nursing home chain of $677 million dollars. The plaintiffs alleged, and the jury believed, that Skilled Healthcare, the owner of many nursing homes in several states, routinely understaffed its California nursing facilities, compromising patient care in an effort to maximize profits.

The case was a battle. ”Everything was fought tooth and nail,” Timothy Needham, lead trial lawyer for the team of plaintiff lawyers told the Times-Standard. The trial lasted six months. But the verdict was so big it created practical problems for the victors, and potentially fatal concerns for Skilled Healthcare, a publically traded company. Because of the size of the verdict, Skilled Healthcare could not afford to pay such a huge judgment and could not appeal the result (appeals require the posting of a bond, which is a percentage of the verdict), and the plaintiffs really didn’t want to take over the company. So, smartly, everyone agreed on a settlement.

It was announced yesterday that the verdict of $677 million was settled for $62.8 million.

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