For-Profit Nursing Homes Fare Worse Because of Corporate Outsourcing


For-profit nursing homes are more frequently outsourcing business via sister companies operated by the same owner. But a recent Kaiser Health News (KHN) analysis of federal inspection and quality records reveals that, “Nursing homes that outsource to related organizations tend to have significant shortcomings: They have fewer nurses and aides per patient, they have higher rates of patient injuries and unsafe practices, and they are the subject of complaints almost twice as often as independent homes.” In addition, KHN found these like issues at other homes with similar corporate structures:


  • Homes that did business with sister companies employed, on average, 8 percent fewer nurses and aides.
  • As a group, these homes were 9 percent more likely to have hurt residents or put them in immediate jeopardy of harm, and amassed 53 validated complaints for every 1,000 beds, compared with the 32 per 1,000 that inspectors found credible at independent homes.
  • Homes with related companies were fined 22 percent more often for serious health violations than were independent homes, and penalties averaged $24,441 — 7 percent higher.
  • In 2015, nursing homes paid related companies $11 billion, a tenth of their spending, according to financial disclosures the homes submitted to Medicare
  • For-profit nursing home fines averaged $25,345, which was 10 percent higher than fines for independent for-profits, and the homes received 24 percent more substantiated complaints from residents.
  • Overall staffing was 4 percent lower than at independent for-profits.


These findings make it evident that many nursing home operators are not in business to care for the elderly, but rather to profit off them.


For-Profit Nursing Homes Spend Less Money on Patient Care


In 2017, the Government Accountability Office was able to determine that for profits, especially chains, spend less money on not only staffing, but on expenses related to indirect patient care, such as:


  • continuing education for nursing and clinical staff
  • maintenance and housekeeping of the facility
  • medical supplies
  • resident nutrition


As always, the nursing home neglect and abuse attorneys at Levin & Perconti encourage you to consider your options when making the life-changing decision on how to choose the best care facility for your loved one. We hope that you will use Nursing Home Compare and when meeting with a facility administrator and staff, will ask the right questions regarding staffing, investments in resident health and safety, and past violations.


Chicago’s Nursing Home Abuse and Neglect Attorneys


It can be tough to hold for-profit nursing home owners personally responsible for the actions of a larger corporation, but we have the experience as one of the most widely-known and respected nursing home abuse and neglect law firms in Illinois, achieving multiple million dollar verdicts and settlements for injuries resulting from nursing home neglect no matter who the nursing home owner may be.


Our consultations are always free, confidential, and handled by one of our skilled attorneys. Click here to fill out an online request form or call us toll-free at 1-877-374-1417 or 312-332-2872.

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