Last month, we posted on lawsuits brought forth by the Attorney General of Pennsylvania against nursing homes in the state. Facilities owned by Reliant Senior Care were named in the lawsuit and were sued for $2 million, the largest verdict of its kind in the state of Pennsylvania. Reliant was guilty of negligence, abuse and under staffing its facilities. This month, Priority Healthcare Group, a New York-based nursing home group, announced the purchase of 10 Pennsylvania nursing homes owned by Golden Living Nursing Homes. Golden Living is also being sued by the Pennsylvania Attorney General for violations that are strikingly similar to those committed by nursing homes owned by Reliant Senior Care.
Priority Healthcare has purchased the licenses for the nursing homes but not the actual buildings or land, which has led some skeptics to believe this was a move by Golden Living to meet promises it made to the attorney general as part of a to-be-announced deal. When questioned, Priority says that it was attracted to Golden Living’s 10 nursing homes because they are passionate about making over nursing homes in need of improvement. They also claim that they have a track record of improving such facilities, although data showing their past successes is not available.
Due Diligence is Always the Best Bet