Skilled Nursing Facility Taxpayer Dollar Transparency

Not Getting Our Money’s Worth

Californians are paying more for nursing home care, for fewer residents, than ever before and we are not getting our money’s worth.  Despite spending nearly six billion dollars a year, complaints against facilities are at record highs and the care provided is often abysmal. 

Nursing homes are using complex ownership structures to siphon their revenue to “related parties,” allowing corporate home offices to hide their profits and support facilities’ claims for yet more public money.  As public spending on nursing homes grows, so do shadowy side transactions between corporate nursing home chains and related parties.  Payments to related parties grew by 66 percent from fiscal years 2007 through 2015 and now exceed $1 billion annually.  Other vast sums of money are paid to associated companies that are not considered related parties because of loopholes in the law.

Nursing home residents are endangered when nursing home chains funnel money that is meant to pay for resident care and staffing to their related parties. Taxpayer dollars meant for the care of disabled and infirm residents are instead funding billionaire lifestyles.  Nursing homes are well funded to take care of residents but facility owners are more interested in taking care of themselves.

Follow the Money

SB 650 requires nursing homes to file annual consolidated financial statements, giving the State and the public more transparency for taxpayer funded nursing home payments.  Facilities will submit detailed flowcharts outlining the operator’s corporate structure, including all related-party entities as well as unrelated parties doing business with the facility.  The bill also requires nursing home management and property companies to submit audited financial reports so they too are part of nursing home transparency.

The public has the right to know how much of its money is supporting nursing home residents and how much is supporting nursing homes owners.

SB 650 is proudly co-sponsored by CANHR

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