As reported by McKnight’s, new developments at the federal and state levels may force nursing home operators to be more transparent about their corporate structures.
Currently around the United States, nursing home operators frequently employ “catch-me-if-you-can” corporate structures. By effectively dividing up corporate organization into a mesh of smaller subsidiaries, not only are nursing home operators benefiting from tax advantages and government subsidies, they are also insulating themselves from lawsuits.
But at the federal level, certain provisions in the Affordable Care Act, or Obamacare, are expected to require nursing home operators across the country to extensively and transparently report their nursing home ownership, management, and financial connections.
And at the state level, Connecticut legislators are drafting a bill that may serve as a future model for the entire nation: nursing home operators will have to reveal the financial status of any “related party” business that contracts with its facilities. This includes any associated companies that might own facility properties or third-party contractors, subsidiaries, or ‘spin-offs’ that provides rehabilitation or management services. The bill will also mandate all nursing home operators to report profits for any related enterprise exceeding $10,000 a year.
The Kosieradzki-Smith Law Firm has a documented history of expertise in bringing down the big elderly care corporations who employ catch-me-if-you-can tactics. Mark Kosieradzki, firm partner, is working on developing a book related to navigating and exposing corporate structures through civil litigation.
The Kosieradzki • Smith Law Firm represents clients in cases involving catastrophic injury caused by nursing homes and other care facilities that fail to provide proper care. If you believe your loved one has been harmed due neglect or abuse in a nursing home, take action and contact the Kosieradzki • Smith Law Firm online or call us toll-free at (877) 552-2873 to set up a no-cost, no-obligation consultation.