Limiting Liability Through Corporate Restructuring
Article Review, the Law Office of Jeffrey J. Downey.
The attached article provides some important insights into how the nursing home industry protects their assets by creating complex corporate structures. Various large nursing home chains like HCR ManorCare and others have followed the recommendations outlined in this article written over a decade ago. They have split their holdings and property from their operating entity. If another company owns the assets, then the nursing home can attempt to shield their assets from the government and third parties who seek to recoup fraud payments or hold the facilities liable for patient neglect. The government seems reluctant to go after real estate investment trusts (REITs) and other purportedly separate entities who structure their companies to avoid being held liable for their torts and fraud. But if our Medicare system is to survive, the government needs to be able to recoup money passed up or through the corporate maze of restructuring. Some Courts have sought to hold owners individually liable, but more legal precedents need to be established to craft remedies that will hold the companies fully liable for their fraud and negligence. Click here to read.
Jeffrey J. Downey, Esq.