Complete Story
03/21/2024
Forbes Exposes Hidden Margins in For-profit Nursing Homes
Forbes published an article on Monday calling into question a report released last week covering whether nursing homes owners understate the profits they report to federal regulators by shifting income to related businesses. Two academic experts in nursing home finance found that in one state, 63 percent of margins are obscured through related-party businesses. To put it another way, only 37 percent of true nursing home profits are reported to federal regulators.
On the same day as the Forbes article, McKnight’s Long-Term Care News published an article with nursing home owners rebutting the original article, stating the article highlighted practices of individual ownership groups and combined them with others’ to paint a dark picture of operations nationwide.
Neither article noted the key differences in non-profit operators, where transparency is the rule with tax records available to the public for review.