It’s often difficult to understand who owns nursing homes. Piercing the corporate veil, as it’s come to be known to plaintiff attorneys is a daunting task. Many homes have been ‘converted into real estate investment trusts, or REIT[s], … under names like Venta, Senior Housing Properties Trust, and … Health Care REIT.” These groups, which are large real estate conglomerates, are seeing an increase in profits, even though Medicare cuts in 2011 meant cutting expenses, which was expected to eat into profits. Though the groups are profitable, many health care companies don’t want to be associated with the groups, in fear that additional cuts to Medicare will result in real and deep cuts to profits. The business of caring for the elderly may be profitable now, but with Medicare cuts happening more and more, even the minimum safety and adherence to regulations may be in danger of disappearing altogether.
See article from The Street.