How delays and bankruptcy let a nursing home chain avoid paying settlements for injuries and deaths

Genesis HealthCare, once the nation's largest nursing home chain, is attempting to avoid paying approximately $259 million in settlements related to resident injuries and deaths by filing for bankruptcy. A KFF Health News investigation revealed that the company strategically deferred payments through settlement agreements, often for a year or more, while knowing insolvency was a possibility. In many cases, Genesis paid nothing or only a portion of agreed-upon settlements, leaving families feeling betrayed and without recourse.

The company's financial struggles stem from a 2007 leveraged buyout and subsequent real estate transactions, coupled with rising labor costs and increasing lawsuits. Critics allege that private equity involvement and complex financial maneuvers allowed owners to prioritize profits over patient care. The bankruptcy plan, involving a sale to its largest investor, is facing scrutiny for potentially shielding new ownership from liability.

Numerous cases highlight the pattern of delayed or unpaid settlements, including instances of alleged negligence leading to severe injuries and deaths. Families describe a frustrating cycle of legal battles and ultimately, the realization that they may never receive the compensation they were promised. The situation raises concerns about accountability within the nursing home industry and the use of bankruptcy as a tool to evade financial responsibility for alleged wrongdoing.

(Source：Cbs News)