Company News: Nursing Homes, Johnson & Johnson, Berkshire HathawayBy
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.
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