Congressional Democrats requested details about the money spent by the owners of three big public, for-profit nursing homes, after the companies said they can't afford the Biden administration's new minimum staffing standard. new minimum staffing requirement.
In letters sent to the companies, Senators Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.) and Bernie Sanders (I-Vt.), along with Representatives Lloyd Doggett (D-Texas) and Jan Schakowsky (D-Ill.) asked for information on buyouts, dividends, and executive and shareholder salaries.
The lawmakers want to compare that with the salaries for nurses and nursing aides, amid widespread industry opposition to the new staffing requirements due to cost concerns.
The lawmakers believe that the industry diverts hundreds of millions of dollars away from nursing home staff and patient care and into the pockets of company executives and shareholders.
The lawmakers are asking the three companies how they decide on executive pay and whether it is affected by quality of care or profits. The letters also ask about the three companies' average pay and tenure for their registered nurses and nurse aides.
Since 2018, National Healthcare Corp., the Ensign Group Inc. and Brookdale Senior Living Inc. have spent nearly $650 million on stock buybacks, dividends, and other financial rewards to top executives, including nearly $118 million for Brookdale Senior Living, $300 million for the Ensign Group and over $226 million for National HealthCare Corp.
The lawmakers said that this level of executive spending undermines the claim that nursing homes cannot afford to pay for enough staff to meet the new rule.
Last month, the Biden administration announced a rule requiring nursing homes to have minimum levels of front-line caregivers for the first time or face financial penalties. final rule Among other provisions, the final rule will also require facilities to have a registered nurse on staff 24 hours per day, seven days per week. The rule requires nursing homes to provide each resident a minimum of 0.55 hours of care from a registered nurse and 2.45 hours from a certified nursing assistant every day.
The rule is aimed at addressing nursing homes that are chronically understaffed, which can lead to substandard or unsafe care. The rule’s requirements will be introduced in phases, with longer timeframes for rural communities.
Advocates have been calling for a minimum staffing requirement for more than two decades, arguing that residents are safer and have better care with more staff, but the industry had successfully resisted.
Congressional Democrats asked for information about the corporate spending by the operators of three of the country’s largest public, for-profit nursing homes, after the companies said they can’t afford the Biden administration’s new minimum staffing requirement. In letters sent to the companies, Senators Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.) and Bernie Sanders (I-Vt.), along with…
