This article points out a report that concludes some nursing homes engage in some financial manipulation. They outsource a number of services performed in their facilities. But the services are outsourced to related companies. The report found that nursing homes that do this tend to have fewer nurses on duty and other shortcomings.
A Kaiser Health News review of federal inspection and quality records shows nursing homes that outsource to related organizations often have fewer nurses and aides per patient, higher patient injury rates and almost twice the number of complaints as independent facilities.Behind the scenes, the related owners can create lucrative contracts with facilities for their services and record those higher profits away from nursing home accounts, Kaiser reported.“Almost every single one of these chains is doing the same thing,” said Charlene Harrington, a professor emeritus of the School of Nursing at the University of California-San Francisco. “They’re just pulling money away from staffing.”