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For-Profit Nursing Homes Have High Rate of Abuse and Fraud Charges

For-Profit Nursing Homes Have High Rate of Abuse and Fraud Charges

Recent studies by the Department of Health and Human Services are showing that for-profit nursing homes have a much higher percentage of charges involving elder abuse and fraud, than those that are operating as a non-profit.

The investigation found that about 30 percent of claims in for-profit homes were found to be improper, compared to only 12 percent in non-profit organizations. Researchers attribute this percentage to the rising profit margin for the profiting nursing homes. In 2010, 78 percent of their earnings were going to revenues, which is a 6% increase in just a decade.

In the nursing homes that are making money, companies are pushing the facility managers to keep down costs by hiring less qualified people, who won’t demand as much pay, keeping employment at a minimum, and increasing their number of patients. In addition, they encourage patients to get services that they don’t need, which inflate the patient’s bill. Some hospitals have even overcharged their patients.

Studies have found that for-profit companies charge twice as much as non-profits for patients who were a similar age and had similar issues. According to the Medicare Payment Advisory Commission, about 70 percent of nursing homes in America operate to make money.

Bloomberg News has recently detailed a number of horrific cases in which nursing home negligence has occurred in the for-profit medical community. In South Carolina, an 80-year old woman was made to stand in a frame for her physical therapy for an hour and a half even though she couldn’t keep up her head or open her eyes. She died two days later. Another case involved a 77-year old woman in a California home who choked to death because there was nobody in the facility’s dining hall to assist her.

If you or a loved one has experienced abuse or fraud in a nursing home, then you need to get an experienced Raleigh personal injury attorney from our firm on your side. Since we have dealt with a number of these cases, we know that it can be a stressful and emotional time. Contact our firm for a free case evaluation so we that can defend your rights.