Administrative salaries in nursing homes

Blueneck

Former Staff
Jun 2007
56,167
44,334
Ohio
New numbers from the state show some 200 Ohio nursing homes are paying six-figure administrator salaries and the industry is spending millions of Medicaid dollars to employ owners' family members and to hire related side businesses.

An Associated Press review of data compiled by the Office of Health Transformation for release Thursday comes as Gov. John Kasich's administration is in an emotionally charged faceoff with the nursing home industry over its spending.

The governor's $55.6 billion state budget proposal cuts nursing homes' Medicaid funding by $222 million over the two years beginning July 1. The financial impact on the industry is estimated at $427 million, however, because costs and demand are expected to continue to rise. Medicaid is the state program for those who can't afford medical care.

Kasich seeks to expand access to home care programs, such as PASSPORT, and increase quality incentives to nursing homes as part of a health care system overhaul led by the transformation office.

For-profit nursing home operators cried foul in a recent television commercial, which urged Ohioans to lobby state senators to restore some of the funding. "Call now, before it's too late," the ad said, as a plug was pulled from the wall and a heart monitor flat-lined. Kasich, AARP and an association representing nonprofit homes decried the ad, and the group behind it pulled it off the air.

Amid their fight against the cuts, data from 2009 cost reports filed by more than 900 nursing facilities statewide showed 216 paid their administrator more than $100,000. On average, administrators make about $80,000 -- slightly below the national average. The reports are the latest available.

Jo-Lin Health Center Inc. in Ironton topped the list, reporting paying its administrator $301,663. The median salary in Lawrence County, where the center is located, is $34,596, according to state data.
This part confused me:

Overall, nursing facilities reported spending $44.1 million on businesses in which owners have an interest. Green's Nursing and Rehabilitation Center in Lyndhurst spent the most: almost $2.2 million. Newark Health Care Centre in Licking County spent the second highest: $1.2 million.

Erin Kennedy, executive director of the Newark home, told The Advocate newspaper that expenses reported in the data go to a contractor that provides physical, occupational and speech-language therapy services "to help our patients and residents regain their lives and return home as quickly as possible."

*snip*

Pete Van Runkle, association executive director, said businesses in which owners have some business interest might provide groundskeeping, medical supplies or food.
Are they saying the owners of the homes are also making a profit off of contracting services such as landscaping to companies they own an interest in, effectively overcharging themselves and listing it as an expense to avoid declaring profits?

These are all for profit nursing homes they are talking about here, btw.

Nursing homes, governor at odds on Ohio budget - BusinessWeek
 

Blueneck

Former Staff
Jun 2007
56,167
44,334
Ohio
Why can't for profit medical providers deliver the better, cheaper services they are always promising?
 
Feb 2011
17,070
6,098
Boise, ID
Because (in these cases especially) they are not held accountable to quality and cost by the individuals receiving the services, but rather by bureaucrats in an office building half a state away.
 

Blueneck

Former Staff
Jun 2007
56,167
44,334
Ohio
Because (in these cases especially) they are not held accountable to quality and cost by the individuals receiving the services, but rather by bureaucrats in an office building half a state away.
What happened to their humanity?
 

michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
Pretty soon managers making 5 figures will be the cause of the collapse.
 
Dec 2010
1,589
462
This part confused me:



Are they saying the owners of the homes are also making a profit off of contracting services such as landscaping to companies they own an interest in, effectively overcharging themselves and listing it as an expense to avoid declaring profits?

These are all for profit nursing homes they are talking about here, btw.

Nursing homes, governor at odds on Ohio budget - BusinessWeek
They're paying family members to provide "services." While that MIGHT include landscaping and lawn care, it is more often for "counseling" or "therapy," whether the contracting family member is licensed and qualified or not. Another frequent scam is to purchase all food from a single, family-owned supplier, or to use only medical supplies which come from a family-owned warehousing front. In Kentucky, a well-connected nursing home owner had been paying her daughter as a "dietician," even though the daughter had no credentials and was underage to be working anywhere.
 
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