We’ve often discussed the difficulties that arise when filing suit against a nursing home stemming from the complex nature of how the “behind the scenes players” structure the corporate entities behind these facilities.
As a recent article out of California suggests one recent lawsuit is looking at this issue from a different and unique vantage point.
One common perception is that nursing home ownership groups set up complex, byzantine structures (usually consisting of the same small group of investors) — where, for instance, one corporation owns the “brick and mortar” facility, one entity owns the property, one entity owns the furniture, one entity is set up to manage the facility, and so on and so forth — to spread things out for purposes of liability and “compartmentalize” things to make it more difficult to pin fault on any one person or corporate entity when a patient suffers abuse and/or neglect.
What the article detailing the California lawsuit suggests is that the parties bringing suit allege it might also have something to do with profit. The article explains that:
“At issue are state-approved agreements in which Country Villa homes contract out their operations to another Country Villa entity. The management company gets a percentage of revenues from the homes it operates. [An attorney] contends that the management company doesn’t actually run the facilities and instead consumes money needed to care adequately for patients.”
Essentially, the article explains that the plaintiffs in that lawsuit are alleging that the entities set up to run the nursing homes are something of a “ploy” to just sit back and collect the revenues generated from the day-to-day operations.
It can’t be emphasized enough that this is something of a controversial theory, to say the least, and that nothing in the lawsuit reported in the article should be taken as established fact just yet, but it certainly speaks to a growing distrust in the way that nursing homes are set up and, if ultimately successful, might one day be the start of a new trend in the way that attorneys in this field of the law approach this issue.
You can contact us here 24/7/365 (and we really mean that as we will answer our phone) if you have anyquestions and to learn how we may be able to help you or your loved one who has been a victim of nursing home abuse or neglect – in particular, you will find that we listen, take your phone calls and e-mails (and even text messages!). We would be honored to help you with your matters – large or small.