Tunneling Money to Related Entities
Expert Charlene Harrington raised concerns about future investments in the nursing home sector through a recent critical analysis. Harrington’s article criticized how operators like PruittHealth and the Portopiccolo Group prioritize cost-cutting and profits over patient care. They tunnel money to related entities for worthless or nonexistent “management services.” The industry has weak enforcement of standards with no penalties endangering the vulnerable adults under their care and supervision.
Private equity investors and operators are buying underperforming nursing homes and promise improvements but fail to invest in the facilities and caregivers. PruittHealth was accused of secretly hiding millions in profit while claiming losses. Harrington mentioned how PruittHealth had $2 million in fines. Harrington also attacked the Portopiccolo group in the critical analysis. Their defense is that data might be inaccurate or old.
Recent Comments