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We need more transparency in the nursing home industry and government funds. Bloomberg Law reported Senator Elizabeth Warren’s letter to Genesis nursing home chain.
Warren wrote that funds received under the Cares Act “should not be used to line the pockets of company executives who fail to address the public health threats from the pandemic, and your company should not be seeking additional public funds while giving departing executives multimillion dollar bonuses.”
The nursing home chain gave its CEO a $5.2 million “retention payment.” Hager was awarded the payment in October. He retired less than three months later. He was also given an additional $650,000 bonus and a three-month, $300,000 consulting contract.
Genesis operates more than 300 nursing homes across the country. More than 2,800 of its residents have died of covid-19 after Genesis took over $300 million in government funds
Sen. Warren (D-Mass.) sits on the Senate’s Special Committee on Aging. She asked the company board to explain its decision and to provide the minutes of all meetings where compensation was discussed. Genesis also set aside more than $2 million for other executive bonuses.
“I would like an explanation for this unfathomable greed amidst a public health tragedy and economic crisis,” Warren wrote. “There is no rationale whatsoever for offering Mr. Hager a multimillion dollar windfall in the wake of these fatalities.”
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