Legal Solutions

Is a nursing home’s corporate structure important?

On Behalf of | Aug 24, 2022 | Elder Law

When the time comes that we need to find a nursing home for our loved ones, most people do not think about looking at the corporate structure or the insurance of the nursing home. However, more-and-more people are finding out the hard way that these two items are more important than the nursing home’s reviews and star rating.

Why does the corporate structure matter?

If you are currently looking for a Beaumont, Texas, nursing home, you have probably heard the sales pitch about how being part of this large, national chain gives your local nursing home a leg up over locally owned nursing homes. However, what they do not mention is that these large, multi-state nursing home conglomerates often have extremely complicated corporate structures with multiple companies providing services, along with a string of ownership interests.

This matters if there is an issue with the nursing home. If there are elder law issues, like nursing home abuse or neglect, who to sue on behalf of your loved one is the first consideration. However, if there are 30 companies in their corporate structure, even starting the litigation process can take months of research and due diligence to make sure everyone is served and everyone who should be included in the lawsuit is included.

In addition, each entity in that Beaumont, Texas, corporate structure will point the finger at another entity as the responsible party, further complicating litigation. Plus, this also gives insurance companies an out as they may point to uninsured entities as the ultimately responsible parties, which again only complicates litigation.

Insurance is important too

Most nursing homes do not advertise their insurance, but you should inquire about the policy and limits because, often, nursing homes are underinsured or let their insurance lapse. This is important because many nursing homes immediately file bankruptcy when faced with mounting legal bills. And, if they do not have adequate or active insurance, you may not be able to get the civil justice to which you are entitled.

Why does bankruptcy matter?

As potential litigants against Beaumont, Texas, negligent nursing homes, anything you win against them is considered unsecured debt. However, in bankruptcy, the secured debtors are paid first, which means that you will receive only what is left and only on a proportional basis. One such recent case saw nursing home litigants receive less than 1%.

Doing your research upfront can help avoid a lot of issues on the backend. But, regardless of how much research you do, your loved one may still experience nursing home abuse and neglect. If so, there are legal options.