@TomasJNavia@joshuahersh Life Care Centers of America is owned by Forrest Preston, who has made billions building a nursing home empire while hiding just how much money he makes. (2/11)
Preston and the vast majority of nursing home owners use a web of companies owned by the same person — known as related parties — to move money around. (3/11)
Nursing homes report to the government how they use public dollars, and how much they pay to related parties. Those reports can be manipulated to make facilities look like they’re losing money. (4/11)
There’s no transparency showing how related parties use the $$$. In the early 2000s, the federal government sued Life Care alleging that it understaffed a Georgia facility to increase profits, as patients died. Life Care didn’t admit any wrongdoing. (5/11)
Nursing homes are supposed to have 24/7 staff to meet residents' needs. Recent studies show that more than half of US nursing homes are understaffed, and Life Care has claimed its finances are tight and cannot hire more staff. (6/11)
We obtained court documents showing the finances of Life Care. It reported a loss from operations in 2001. By the end of that year, it had loaned its related parties $100+ million and loaned Preston $27+ million. (7/11)
This data is the best glimpse we have into the finances of Life Care. Without recent financial statements, lawmakers who decide how much money to pay nursing homes have no idea how nursing homes are spending $80+ billion annually. (8/11)
We tried for months to get an interview with or statement from Life Care, but they did not respond to our requests. A crisis communication expert they hired told reporters that Life Care needed more support from the government to address COVID. (9/11)
Some states have taken action. NJ, NY, & MA passed laws requiring that the majority of money that nursing homes get go to direct patient care. There is no federal requirement, and nursing homes don’t have to file related party financial statements. (10/11)
For more, watch Aging, Inc. here: (11/11)
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