Why departure of nursing home giants is good news
(10/26/02 Tallahassee Democrat) Opinion by Barbara Hengstebeck

For the second time in as many years, nursing home residents received some very good news. The first good news came when nursing home giant Beverly Enterprises announced it was leaving the state. The second came earlier this week when Kindred Healthcare, formerly known as Vencor, made a similar announcement.

For the uninitiated, both Beverly and Kindred have made national news for widespread and repeated fraud as well as disturbingly bad care. Make no mistake about it, these two corporate giants are the poster children of what is wrong with nursing home care in America. Both have been caught "misallocating" staggering amounts of taxpayer monies reaching into the hundreds of millions of dollars. On multiple occasions, these corporations were caught engaging in their own brand of "accounting irregularities" and "irresponsible debt. " Both were subsequently forced to admit that money that was supposed to go to care was diverted to elaborate corporate schemes and offensive executive salaries. Just this week, it was reported that the CEO of Vencor was paid almost $13 million last year - the same year that the U. S. Department of Justice demanded Vencor repay $1. 3 billion for fraudulent billing practices. Beverly also got the justice department's attention. After investigating Beverly's billing practices, a spokesperson for the agency stated that these chains appear to have "incorporated defrauding Medicare as part of their overall business strategy. "

Chronic neglect brought on by systemic short staffing has lead to shocking conditions at many of their facilities. A U. S. General Accounting Office report found that they had cut staff in an effort to please stockholders. As a result, thousands of residents needlessly suffered, and some died. The federal government was forced to pass a law specifically designed to stop Vencor's patient-dumping scheme that literally cost some residents their lives.

So why are they leaving?

Two years ago, Florida passed a tough new law requiring more staffing, tougher regulations and stiffer fines for nursing homes. The Legislature also made it much tougher to sue bad homes. In fact, the nursing home industry lauded the measure as a national model. Yet despite this new law, Kindred and Beverly both cited lawsuits as a reason for their departure. Their statements defy logic.

But whatever the reason, lawsuits or tougher care standards, Floridians of all ages should rejoice in knowing that another very bad actor is leaving this state.

With that we say, "Good riddance. "