In a series of troubling incidents involving nursing homes and their operators, several families have voiced their concerns over the care provided to their loved ones, leading to severe health complications and fatalities. The financial and operational structures of nursing homes, particularly those owned by Real Estate Investment Trusts (REITs), are under scrutiny as lawsuits and court verdicts reveal alarming patterns of neglect.
### Issues with Nursing Home Care
The tragic case of Pearlene Darby, an 81-year-old retired teacher, exemplifies the perils faced by residents of nursing homes. According to her daughter, Darby suffered from severe bedsores that developed into infections, ultimately leading to her death within two weeks of hospitalization in 2020. A subsequent lawsuit alleged that City Creek Post-Acute and Assisted Living failed to provide adequate care, including leaving her in soiled linens for an extended period.
The family reached a confidential settlement with the nursing home, highlighting the dire state of management and care within some facilities. Notably, the nursing home was owned by CareTrust REIT, which received over $1 million in rent despite the facility’s operational deficits during the same year Darby passed away.
### The Role of REITs in Healthcare Facilities
REITs, which have rapidly acquired nursing homes and senior living facilities in recent years, claim to be passive landlords devoid of involvement in daily operations. However, internal records suggest a different narrative. CareTrust was found to have significant control over operational decisions, such as selecting management companies and closely monitoring financial and safety metrics.
Joseph Layne, Corporate Counsel for CareTrust, emphasized that the company was not responsible for patient care, asserting their role as mere property owners. Yet, many industry experts argue that REITs exercise far more influence than they admit, contributing to systematic issues that can lead to inadequate care.
### The Legal Landscape
Families affected by this neglect are increasingly turning to the court system for redress. Leslie Adams, whose mother Shirley died from infected bedsores while in care at Lakeview Rehabilitation and Nursing Center, secured a $17 million judgment against the facility. However, Adams expressed frustration over the challenges in collecting the award, questioning how nursing homes can continue to operate amid such serious legal repercussions.
A recent jury awarded $92 million in damages in another case involving a 100-year-old resident who died of hypothermia after wandering outside her nursing home. In that case, the nursing home was also owned by a REIT, raising questions about accountability within the industry.
### Regulatory Oversight and Staffing Concerns
Despite the prominence of REITs in the nursing home sector, many are effectively invisible to regulators. Facilities are not required to disclose their rental agreements or landlord identities in annual Medicare reports. Critics argue this lack of transparency enables poor care standards to persist, as oversight bodies focus more on clinical outcomes than on the financial pressures that may lead to neglect.
Investigations show a correlation between REIT ownership and detrimental effects on care. For instance, some analyses point to an increase in staffing shortages and poor health inspection ratings after REIT acquisitions. This raises a critical question: are financial motives overshadowing the need for adequate patient care?
### Concluding Thoughts
The intersection of healthcare and real estate investment is increasingly becoming a point of contention, with growing evidence that profit-driven models can compromise the quality of care in nursing homes. Families dealing with loss due to inadequate care are calling for greater accountability and regulatory oversight of nursing homes. The cases highlighted reveal a troubling trend that prompts a re-evaluation of the relationship between REITs and the facilities they operate, ultimately affecting the most vulnerable members of society.
Source: Original Reporting
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