Analysis Shows Outsourcing Nursing Home Services Causes Poor Care

Posted on behalf of Jeff Pitman on January 5, 2018 in Nursing Home Abuse
Updated on April 25, 2024

fold up wheelchair in hallwayAn analysis by Kaiser Health News (KHN) reveals that more than 11,000 nursing homes from across the nation are outsourcing a variety of goods and services. In many cases, these business arrangements are allowing outside companies to make millions while nursing home residents are not receiving the care and attention they need.

If your loved one was abused at a nursing home, contact one of our nursing home abuse attorneys. We may be able to build a case against the abusers or the facility and obtain compensation. Your consultation is free and you will not be charged legal fees unless you receive compensation.

Problems with Outsourcing Nursing Home Care

KHN analyzed federal inspection and quality records and found that nursing homes that outsource services have many problems. For instance, these facilities have:

  • Lower ratio of nurses and aides to patients
  • Higher rate of unsafe practices and injuries to patients
  • Complaints filed against them twice as often as independent facilities

KHN discovered one case where an 82-year-old resident of a Memphis, Tennessee, nursing home had been wearing a sock for a month. Her foot had rotting flesh and doctors had to amputate most of her leg.

While this resident was ignored, Allenbrooke Nursing and Rehabilitation Center was running a $2 million deficit. The facility also had a shortage of nurses, aid and supplies like diapers, sheets and linens.

KHN’s analysis found that the facility paid $2.8 million to a variety of companies to provide a variety of things at the facility, from physical therapy to management and drugs. The owners of the nursing home controlled these corporations, allowing them to set up favorable contracts that allowed them to make millions in profits.

These arrangements are very common in the nursing home industry. These contracts are set up so nursing homes pay more for services than they likely would in the marketplace. This means the owners have higher profit margins than they otherwise would and they can keep these profits for themselves.

Nursing homes are spending a lot of money on these types of outsourcing arrangements. Financial disclosures submitted to Medicare show that nursing facilities spent $11 billion on outsourcing services in 2015.

Another problem with these arrangements is that they make it more difficult for victims of abuse or neglect to collect compensation. This is because various companies could be liable for the abuse, instead of just the nursing home.

Contact a Nursing Home Abuse Attorney for a Free Consultation

Unfortunately, many residents suffer abuse or neglect when nursing homes put profit above providing quality care. When this happens, these facilities and employees who abuse residents could be held liable.

Our nursing home abuse attorneys understand the complexities of nursing home abuse cases, including situations where care and other services are outsourced. We know how to build a strong case as we pursue the compensation you are entitled.

Schedule a free legal consultation to review your situation and discover your legal options.

Contact our firm today by calling  414-333-3333 or completing a Free Case Evaluation form

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