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Once again, CGWC partner, Nathan P. Carter, was quoted in another in a series of articles in the New York Times regarding the abuses of nursing home residents by nursing homes operated in complicated schemes by private equity firms designed to avoid liability in civil court for the injuries and deaths caused by neglect, abuse and malpractice by their management and caregivers.
These private equity firms, often owned by politically connected power brokers from all over the country, use complex corporate structures in which assets are placed in limited liability companies or other corporate entities which are separated from the companies that hold state issued licenses to operate the facilities in states all over the country, including Florida. By structuring the operation of long term care facilities in this fashion, the licensees, which hold few if any assets of the operations, are essentially judgment proof, and the entities with the assets and revenues contend they are shielded from responsibility, since they are “merely creditors” of the licensees, leaving injured victims of abuse and their families no practical legal recourse in civil court.
In fact, these companies are engaged as partners in joint ventures to operate the nursing homes while escaping financial responsibility for injuries and death caused by their malfeasance. The United States Congress is investigating the operation of nursing homes by private equity firms, concerned that the business structure leaves nursing home residents without the ability to fight for their rights in civil courts. Mr. Carter was quoted in the article after being contacted by the Times for comment. Mr. Carter is one of the most experienced nursing home abuse attorneys in the country, is often asked to speak to attorneys at continuing legal education seminars on nursing home neglect, and is author of numerous articles in professional publications on nursing home abuse, neglect, and negligence.