Nursing Homes are Corporate Businesses

Eric J Hertz, P.C
2 min readJun 26, 2018

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A common misconception good intentioned family members have is that the brick and mortar facility their loved-one resides at is a single-building entity. What families unfortunately do not realize is that while there are a small handful of facilities that are non-profit, single-building entities, most nursing homes across the United States are for-profit facilities that belong to nationwide corporations.

Do For-Profit Nursing Homes Provide Low-Quality Care?

For-profit facilities are ultimately businesses, which means their goal of earning a profit can overshadow what should be their most important concern: providing care that promotes and protects a loved-one’s highest well-being. These facilities are reimbursed by the Medicare and Medicaid programs on a daily rate per resident, which means they have incentive to maximize their population while at the same time minimizing the costs of the care they provide — even if that cost-cutting endangers the well-being of a loved-one entrusted to their care.

Corporation-Owned Facilities Cut Down On Qualified Nursing Staff

Staffing is one of the highest costs for operating a nursing home. In order to maximize their profits, corporation-owned facilities will reduce the number of nurses they employ, resulting in less people to treat and respond to a loved-one’s needs, as well as offering substandard wages that attract under-qualified employees. The result is a loved-one not receiving enough care from qualified healthcare professionals, which can lead to neglect, injury, and even death.

Because these corporate facilities rely on Medicare and Medicaid reimbursement to make profits, they will take every step possible to hide their misconduct and fail to report abuse of their residents. As the main concern of these corporations is profits, Eric J. Hertz, P.C. aims to make these corporations realize that cutting costs and maximizing profits at the expense of your loved-one’s well-being will ultimately cost them more.

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