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Nursing Homes' Secret Owners Revealed
29 Sep
Summary
- Nine companies now own 61 nursing homes, up from 12.
- Average quality ratings declined after ownership changes.
- Owner Eli Mirlis settled fraud allegations for $1 million.
A months-long investigation uncovered a significant shift in Massachusetts nursing home ownership, with nine companies acquiring 61 facilities since the pandemic began. This represents a substantial increase from the 12 homes these companies owned in 2019.
Following these acquisitions, the average federal quality ratings for the affected Massachusetts nursing homes generally declined. This trend raises concerns about the standard of care provided to vulnerable residents.
During the investigation, the ownership structures of these chains appeared increasingly opaque. Money flowed through multiple layers of real estate, management, and other companies, making it difficult to ascertain ultimate control.
One notable owner, Eli Mirlis, who built a nursing home empire valued in the tens of millions, faced scrutiny. Reports indicated a decline in care quality at his facilities, with residents and families citing issues like unresponsibly call bells and soiled diapers.
Concerns about Mirlis's operations intensified with a case involving a RegalCare facility in Taunton. Spending on nursing care dropped significantly, while rent payments to Mirlis's own real estate company more than quadrupled.
As the investigation neared publication, Mirlis agreed to pay $1 million to settle federal allegations that his company defrauded Medicare and Medicaid by forcing unnecessary physical therapy on patients. The situation prompts critical questions about regulatory oversight and the protection of vulnerable individuals in the nursing care industry.
