It’s a difficult decision to place a loved one in a nursing home. But eventually, the situation reaches a point where extra help and support are necessary beyond what the family can offer. If you are making this transition, then it’s critical to find a trusted, reliable nursing home to ensure that your loved one will receive the quality care that they deserve.
Unfortunately, there are situations where residents end up in harmful circumstances. Emotional, physical, or financial abuse can occur if the nursing home takes advantage of the vulnerability of the residents. Today, we are taking a closer look at the recent investigative reports that uncover the serious issues relating to financial exploitation in nursing homes – resulting in billions of dollars that were funneled away from residents.
Financial Exploitation in Nursing Homes: What You Need to Know
When a resident is under the care of a nursing home, various types of financial exploitation can occur. Examples include when the money that should be for a resident is instead used in an unauthorized or improper way. For example, the nursing home might overcharge for services or make unauthorized withdrawals.
One strategy is to divert the money through “related party transactions.” This means that the nursing home does business with other companies that they own or control – sister companies or shell corporations. “Services” that are provided might include overly expensive staffing, cleaning, consulting, management, or real estate leases. The costs are increased to allow money to be siphoned away from the residential care facility.
The problem is that this type of abuse can be difficult to detect, especially when the residents are suffering from cognitive decline. The resident often doesn’t realize what is happening with their funds or assets until it is too late.
Real World Example of Nursing Home Exploitation
One recent case came to light in New Jersey, where a nursing home siphoned millions of dollars from Medicaid funds. The result: residents were left in dismal conditions. The nursing home was understaffed and didn’t have sufficient resources to take care of the residents properly. Through this scam, the perpetrators were able to amass a fortune, while providing poor quality care to vulnerable patients.
Instead of using the money to hire additional staff or take care of the facilities, the Medicaid funds went towards their own interests: owner distributions, “consulting fees,” and charitable organizations that were controlled by the scammers.
How Nursing Home Residents and Families are Affected
The consequences of financial exploitation can be severe, especially when vulnerable nursing home residents are involved. The person often suffers emotional distress and a reduced quality of care because they aren’t receiving the medical support and personal services that are needed.
This exploitation causes a domino effect that impacts the entire family. If you have a loved one who has been exploited while in a nursing home, then you and your family members are facing the unexpected financial responsibilities and legal challenges that result from the situation.
Legal Challenges with Financial Exploitation in Nursing Homes
Even though there are laws in place to protect nursing home residents, the legal processes can be challenging. The most important thing that you can do is hire an experienced attorney who specializes in nursing home abuse and financial exploitation, because they will be able to help you build a strong case that proves liability.
The federal Nursing Home Reform Act of 1987 sets the standard for how residents should be cared for in these types of facilities. Nursing homes are legally required to offer services that ensure each person’s overall well-being, including their physical, mental, and emotional health.
Additionally, if a nursing home receives funds from Medicare and Medicaid, then they must follow the guidelines established by the Centers for Medicare & Medicaid Services (CMS). These guidelines require nursing homes to meet certain standards for financial reporting and transparency.
It’s possible that nursing home financial abuse could fall under both healthcare fraud statutes and elder abuse laws, depending on how the case is built. So, hire an experienced nursing home abuse attorney who can offer the best solutions to help you achieve optimal results based on your unique case circumstances.
The Challenges of Finding Justice in These Cases
Even if it is suspected that fraud is occurring in a nursing home, it’s rare for enforcement to occur. If an investigation happens, then it is often a slow and complicated process, which is why families need to take the situation into their own hands by hiring a trusted nursing home abuse lawyer for help.
Having legal support increases the likelihood that justice will be served. Your lawyer can help with the burden of proof. You need a highly skilled legal team in order to build a case that shows poor quality of care in the nursing home AND that the funds were misused deliberately. In order for this to happen, it’s often necessary to use subpoenas to gain access to the financial records, which are necessary to show where the money is going.
It can be a challenge to build a strong case, but our team at Wormington & Bollinger has the experience and strategies that you need. We are ready to dig through the details, fight for discovery, and find the documentation necessary to prove the exploitation.
FAQ
Can a family sue the nursing home if they suspect abuse or neglect?
Yes, there are legal options that can be pursued, such as a civil lawsuit for financial exploitation or neglect. But you will need legal help to build a case that will win and prove where the money went.
What are the signs that my loved one is the victim of nursing home financial exploitation?
Pay attention if you notice that the nursing home is understaffed, they have a high turnover, or your loved one is living in dirty conditions. Other potential warning signs include residents who are malnourished or seem isolated and withdrawn.
Call Our Expert Team for Your Nursing Home Abuse Case
If you need to talk to a nursing home abuse lawyer, then Wormington & Bollinger is the team to call. Reach out right away so that we can help you build a solid case. We are here to fight for your rights and ensure that justice is served. For more information about these legal services, contact us to schedule a no-obligation consultation.