Because nursing homes can hide profits through their own related-party companies, however, it is not possible to know what the actual [profit] margins are without improved cost reporting and accountability.
Quality issues persist as policy makers are unable to oversee how nursing homes spend Medicare and Medicaid payments. The growth in complex nursing-home ownership structures has limited financial transparency by allowing nursing homes to hide public payments and stint on direct resident care.
The group wants a federal task force to audit operational data. This would include CMS’s Provider Enrollment, Chain, and Ownership System (PECOS) database and Payroll-Based Journal (PBJ). PECOS should include all related-party entities operating each nursing facility.
By not establishing and enforcing ownership and management screening requirements, CMS also allows unsuitable persons or companies to acquire and operate facilities.