In “Where Do the Billions of Dollars Go? A Look at Nursing Home Related Party Transactions,” the National Consumer Voice for Quality Long-Term Care (the national advocacy organization representing residents) reports on the limited federal scrutiny of how nursing facilities spend the billions of dollars they receive in reimbursement from the Medicare and Medicaid programs and on facilities’ hiding profits and making themselves look unprofitable by paying inflated prices to related parties (companies that they own or control). The report includes two videos, with Texas attorney Ernest Tosh explaining cost reports and related parties, and case studies of three chains: Life Care Centers of America, Pruitt Health, and Brius.
Consumer Voice makes four recommendations to CMS: audit cost reports, require consolidated cost reports (including information about related parties), implement a minimum nurse staffing standard, and enact a medical loss ratio (profit cap).
Consumer Voice will host a free webinar about the report on April 6, with Consumer Voice staff and Ernest Tosh. Register here.