Are Nursing Homes Owned by REITs Safe for Your Loved Ones?

Are Nursing Homes Owned by REITs Safe for Your Loved Ones?
Date: November 28, 2023
Posted In: DLP Law

When a cherished family member enters a nursing home, the hope is for their safety and well-being to be the top concern. Unfortunately, this isn’t always the reality. Recently, Real Estate Investment Trusts (REITs) have been acquiring nursing homes, driven by the prospect of hefty profits. Yet, in taking over these facilities, they’ve encountered the significant expense of staffing. While these expenses are intended to enhance the level of care, REITs are grappling with the higher costs as it eats into their bottom line.

This prompts a critical question: do REITs truly prioritize the quality of care in the nursing homes they acquire? Despite complaints about staffing expenses required to meet mandated levels, these REITs have already amassed staggering investments, reaching $233 million in just the last quarter. Financial constraints are no longer the issue; it’s their preference to retain these funds rather than allocating them toward staffing and care.

In stark contrast to the approach of REIT-owned care facilities, Dougherty Leventhal and Price Law places paramount importance on the health and safety of residents. Families must conduct thorough research into the ownership of nursing homes before entrusting their loved ones’ care to a facility that may prioritize profits over their well-being. If you suspect that profit is overshadowing resident safety in your or your loved one’s nursing home, our experienced attorneys are here to support and guide you.

Sean McDonough
Upon graduation from law school, he entered the private practice of law with Dougherty, Leventhal & Price. He has been a partner with the firm since 1993. Over the years, Sean has concentrated his practice in the areas of personal injury litigation; he has also represented governmental entities and officials in federal civil rights and employment lawsuits. Sean also works on many of DLP's Nursing Home Abuse cases.