Trends in Long-Term Care - U.S. Senate Special Committee on Aging

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New York City as well as the other municipalities are fac<strong>in</strong>g severe
budget crises. New York State also faces a budget crisis next year.
Wasted money cannot be permitted <strong>in</strong> these days of ever-ris<strong>in</strong>g costs.
The proprietary nurs<strong>in</strong>g homes and health-related facilities are run
on a profitmak<strong>in</strong>g cost-plus basis. The State now relies upon statements
submitted by the nurs<strong>in</strong>g homes as proof of the costs of runn<strong>in</strong>g
the facility almost without verification.
One small department of the State department of health has the
monumental task of audit<strong>in</strong>g the books of all these facilities and has
recovered an average of $77,000 for each facility audited <strong>in</strong> New York
City.
Information is necessary on three fronts-the economic basis for
reimbursements, the quality of care delivered, and the <strong>in</strong>dependence
of the regulatory agencies.
They cannot be separated, but must be exam<strong>in</strong>ed together. A reasonable
allowance for food is only reasonable if that food is actually
delivered to the patients. A reasonable allowance for medic<strong>in</strong>e is only
reasonable if it is given to the patients. A regulation on the books is
only effective if it is enforced.
We must never forget that we are deal<strong>in</strong>g with human lives, not
with a commodity. Anyone who cheats <strong>in</strong> a medical reimbursement
is not merely steal<strong>in</strong>g from the Government, but is steal<strong>in</strong>g from the
elderly who have been delivered <strong>in</strong>to their care.
Today's hear<strong>in</strong>g is a Federal hear<strong>in</strong>g. The commission has held
and will hold State hear<strong>in</strong>gs on this subject. The responsibility for
monitor<strong>in</strong>g the system which delivers care to our elderly is jo<strong>in</strong>tly
shared by Federal, State, and local governments. Cooperation between
the various levels of government is essential if the delivery of decent
care is to be assured.
We will lend every assistance possible to the Federal Government
<strong>in</strong> their <strong>in</strong>vestigation. We will ma<strong>in</strong>ta<strong>in</strong> open communication with
the subcommittee and will make accessible all <strong>in</strong>formation we have
thus far uncovered.
I welcome this opportunity to participate <strong>in</strong> the subcommittee's
hear<strong>in</strong>g and hope that today is merely the first step <strong>in</strong> the partnership
of State and Federal governments <strong>in</strong> pursu<strong>in</strong>g the <strong>in</strong>vestigation of
this <strong>in</strong>dustry.
Senator Moss. Thank you very much, Mr. Ste<strong>in</strong>. We are glad to
have your statement <strong>in</strong> the record, and we do look forward to cont<strong>in</strong>u<strong>in</strong>g
cooperation with your commission.
We will now proceed on the return of the subpenas for the documents
which were called for.
Mr. Val Halamandaris.
Mr. HALAMANDARIS. We -will proceed by call<strong>in</strong>g the counsel represent<strong>in</strong>g
the various pr<strong>in</strong>cipals.
Jack Hoff<strong>in</strong>ger, please.
You are attorney for the Willoughby Nurs<strong>in</strong>g Home, Hayden Manor
Nurs<strong>in</strong>g Home, Oxford Nurs<strong>in</strong>g Home, New Glen Oaks Nurs<strong>in</strong>g
Home, Mayflower Nurs<strong>in</strong>g Home, White Pla<strong>in</strong>s Nurs<strong>in</strong>g Home, New
Vanderbilt Nurs<strong>in</strong>g Home, Burnside Nurs<strong>in</strong>g Home, Fairview Nurs<strong>in</strong>g
Home, Hyde Park Nurs<strong>in</strong>g Home, Meadow Park Nurs<strong>in</strong>g Home,
Morris Park Nurs<strong>in</strong>g Home, Verrazano Nurs<strong>in</strong>g Home. and the
Pelham Parkway Nurs<strong>in</strong>g Home.