Today, Consumer Voice is releasing its new report, Where Does All the Money Go?, which documents the need for increased financial transparency and accountability for how nursing homes spend taxpayer dollars. The report investigates related party spending in New Jersey, where nursing homes paid nearly $2 billion to companies they own and operate. The report takes a closer look at three for-profit nursing home chains in New Jersey that funneled over $206 million, while care in these homes was substandard. The report features residents who live in these homes, describing how their day-to-day life is impacted by poor care.
Key findings from the report include:
- Potentially $49.1 million in profits were hidden in related party rent and management fees alone.
- These homes averaged 3.26 nursing hours per resident/day, compared to 4.67 hours for non-profit homes in New Jersey.
- CMS star ratings for these chains were significantly lower than state averages.
- Residents and families report dehydration, inadequate supplies, and fear of retaliation.
The report makes recommendations, including:
- The passage of legislation (S1948/A1872) requiring audited, consolidated cost reports.
- Increased scrutiny of Medicare and Medicaid cost reports by federal and state governments.
- Requiring nursing homes to document that related party transactions are reasonable and prudent.
