This video is from a talk from Joe Steier, the CEO of Signature Healthcare. In 1999, Mr. Steier joined Home Quality Management, now Signature HealthCARE LLC, as President to help grow the organization into a regional long-term healthcare provider. He thinks the demand for "the Western model" of running nursing homes (read "for profit and cutting corners" is big overseas and many large chains and his company will be overseas soon. What a surprise, he thinks the regulations in the US are somehow punitive. He complains about the government cracking down on fraud and abuse. He thinks the industry needs more protections against lawsuits for neglect and abuse.
Meanwhile, MarketWatch reported that publicly traded companies that operate facilities in multiple states show "record revenues" and "operating profits that exceeded expectations." One company’s revenues spiked 62% over the same quarter last year while another company squeezed out an additional $2.26 per resident day over fourth quarter 2011 Medicare rates. And high profitability shows no signs of slowing. Recent nursing home sales show price per bed costs (a financial solvency benchmark) are quickly rebounding after last year’s fall off, skyrocketing to as much as $95,000 per bed.
"Strong margin calls may appease shareholders and investors, but many residents are languishing from pressure sores, broken bones and the overuse of antipsychotic medications," Brian Lee of Families for Better Care said. "Facing a 1 in 3 chance of being admitted into a lousy facility is a daunting proposition for consumers."
"There is a way to balance profitability and quality of care and that is through greater transparency and disclosure from nursing home companies and their affiliates. This will allow payment systems to be restructured, guaranteeing taxpayer dollars go directly to resident care and safety," Lee commented.
See below for Summary of publicly traded nursing home’s first quarter reports