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Mr. Carter testified that wealthy investment groups set up complex layers of corporations and limited liability companies or partnerships in order to make it harder for injured or abused residents to sue them. Mr. Carter says the elimination of real legal accountability in turn removes incentive to operate nursing homes safely and provide the highest quality of care.
In Florida, this is particularly ominous since most nursing homes operate with no real liability insurance to cover injuries or deaths caused by negligence, neglect or abuse by their staff. This is true despite a state law enacted in 2001 requiring liability insurance. This is because loopholes in the law have not been closed by the governor’s office or the Agency for Health Care Administration. AHCA, a part of the administrative branch answerable to the Florida Governor, has failed to enact or implement regulations imposing minimum levels of liability insurance, so this law is largely ignored. Instead, nursing home operators are entering into complex agreements with investment companies to avoid accountability to residents for injuries and to Medicare and Medicaid for fraudulent or illegal billing.