1,400 nursing home residents sue Minnesota chain
November 5th, 2008 by Jennifer Walker-Journey
About 1,400 nursing home residents are suing a Milwaukee, Minnesota-based nursing home chain for consumer fraud, according to the Minneapolis-St. Paul Star Tribune. The class-action lawsuit alleges that Extendicare partook in deceptive marketing practices to lure deep-pocketed seniors with high-reimbursement conditions into substandard homes that were not equipped to provide the level of care the patients required.
Nursing homes receive higher reimbursements for some medical conditions. The suit alleges that by admitting residents with these conditions the homes were taking advantage of higher profits without regard to whether sufficient care could be provided.
According to the news story, the lawsuit seeks restitution of up to 40 percent of fees paid by private-pay residents, a change in some policies, and a court-appointed monitor to oversee compliance.
Extendicare has eight facilities in Minnesota, some of which have been consistently cited by state inspectors for violations far above the state’s average.
The lawsuit was filed by Laura Bernstein, a resident of one of the homes, on behalf of about 1,400 residents from other homes. Named in the lawsuit are Texas Terrace, Golden Valley Rehabilitation and Care Center, Health & Rehabilitation Center of New Brighton, Richfield Health Center, Robbinsdale Rehabilitation and Care Center, Rose of Sharon Manor in Roseville, Park Health and Rehabilitation Center in St. Louis Park and Galtier Health Center in St. Paul. Two facilities that have since been closed also are named in the suit – Lexington Health & Rehabilitation Center in St. Paul and Whittier Health Center in Minneapolis.