Company News: Nursing Homes, Johnson & Johnson, Berkshire Hathaway

Nursing homes: Overcharging for care

For-profit nursing homes are more likely to overbill taxpayers for treatments patients don’t need or never receive, according to a November report by U.S. federal health inspectors. The study found that 30 percent of claims submitted by for-profit homes were improper, compared with 12 percent for nonprofits. Investor-owned facilities control more than three-quarters of the $105 billion nursing-home market and typically earn a 20 percent profit margin on Medicare patients, compared with 9 percent for nonprofit operators. Federal prosecutors brought 120 now-resolved civil and criminal cases against nursing homes from 2008 to 2012, twice the number of the prior five years.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.