Nursing Home Operator Using Medicare Money For Luxury Items While Neglecting Residents

Last Friday a jury ordered a nursing home operator to pay a large verdict in a nursing home neglect case. The payment is to go to the estate of a man whose family claims that negligent care led to his death at the facility that had been cited for repeated state and federal violations.

The 62-year-old nursing home operator, filed for bankruptcy a week ago, listing total assets of between $20 million and $100 million. The man, who operated Forum Group Corp. and its subsidiary, the facility in the suit, also faces federal charges filed in April in which he is accused of bilking the Medicare and Medicaid programs of over $30 million.

According to the federal indictment he and his wife were taking Medicare and Medicaid payments that were supposed to go toward care of residents at the man's three nursing homes. Prosecutors allege the instead,  the couple funneled the money to purchase luxury cars and real estate, including a $1.3 million Atlanta home for the operator's ex-wife.

In the 52-page wrongful death complaint, filed in March of last year, the daughter of an 80-year-old resident who died April 17, 2007, charged the nursing home with failing to provide adequate care. Her father, who was admitted to the facility a year earlier. During the course of his stay, he fell numerous times, breaking his hip in one instance, according to the lawsuit. The nursing home failed to notify the man's doctors or family of his injuries. At trial, the director of the nursing home testified the facility lacked the funds to pay its staff, do laundry and pay bills. For more, read the story.


Robert W. Carter, Jr. is a Virginia attorney whose law practice is dedicated to protecting the rights of the victims of nursing home and assisted living neglect and abuse in Richmond, Roanoke, Norfolk, Lynchburg, Danville, Charlottesville, and across Virginia.

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