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

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2908 I have here under liabilities, one of the homes, this is C, has accrued taxes and other expenses relat<strong>in</strong>g to payroll of $227,631. Unless that money is <strong>in</strong> a bank somewhere, the U.S. Government which had paid this nurs<strong>in</strong>g home, will not get the payroll taxes. This is a clear <strong>in</strong>dication. We have one home which has $250,000 of accrued taxes and other expenses. That <strong>in</strong>cidentally is a catchall. Mr. HALAINAN-DARIs. What you are suggest<strong>in</strong>g is that you have a large amount of rent that is given away, that is a large amount of salaries, taxes, or loans to related parties, so much so, that you w<strong>in</strong>d up with a negative equity? Mr. LEE. Yes, sir. Mr. HALAMANTDARIS. And are there no controls <strong>in</strong> the State of New York? Mr. LEE. I believe there is some control, but I believe they are <strong>in</strong>adequately monitored or policed. I don't believe that is the fault of the auditors. I th<strong>in</strong>k it is the fault of the system, which does not provide sufficient audit<strong>in</strong>g. Senator Moss. Would not the State department of health be concerned about homes that are go<strong>in</strong>g to be broke and suddenly they have no place for their patients? Mr. LEE. Senator Moss, they have not gone broke. Senator Moss. They are not go<strong>in</strong>g broke? Mr. LEE. They are always-broke, but they are not go<strong>in</strong>g out of bus<strong>in</strong>ess. Mr. HALA]tANDARIS. Do you have another chart.? Mr. LEE. Yes, sir; I do. You asked me if there are problems here <strong>in</strong>herent <strong>in</strong> this type of th<strong>in</strong>g, and you asked me, why would somebody buy a bus<strong>in</strong>ess of this sort. This chart represents the housekeep<strong>in</strong>g costs per bed per week for a variety of nurs<strong>in</strong>g homes. There are 15 homes <strong>in</strong> this particular sample, and we have grouped them <strong>in</strong>to 3 homes <strong>in</strong> the 50- to 100-bed category, 3 homes <strong>in</strong> the 100- to 150-bed category, three <strong>in</strong> the 1550 to 200, and so forth. You would th<strong>in</strong>k <strong>in</strong> terms of housekeep<strong>in</strong>g costs per bed per week, there would be some economv of scale between a 40-bed home and a 250- or 350-bed home. By economy of scale, I simply mean it should cost less per bed per week, on a per-bed, per-week basis, to do the housekeep<strong>in</strong>g and ma<strong>in</strong>tenance around a home that has 300 beds, <strong>in</strong>stead of around a home that has 50 beds. However. <strong>in</strong> this case we found <strong>in</strong> the 50- to 100-bed group. one home has a cost of per bed per week of $19.50, and another one has a cost of per bed per week of $3.50. a variation of roughly 400 percent. We f<strong>in</strong>d <strong>in</strong> the 100- to 150-bed home, one home has a cost of $23 per bed per week. a second home, at the bottom end of the spectrum, has a cost of approximately $6.75 per week, aga<strong>in</strong>, a 300- to 400-percent variation. all with<strong>in</strong> the same group<strong>in</strong>g. We f<strong>in</strong>d <strong>in</strong> a group of 150 to 200 beds, a cost of $21.50 per bed per wveek, versus a cost of $12 and change, roughly only a 90-percent difference. That is not too serious, of course.
$23 22 21 I., 19 18 17 16 15 14 2 2 1 10 B 9_ 13 8_ 7_ 6_ 5_ 4 3 __ 2 _71 A B C 50/100 BEDS HOUSEKEEPING COSTS PER BED/PER WK 100/150 150/200 200/250 250/350 to AD
Page 1 and 2: TRENDS IN LONG-TERM CARE 45-716 0 H
Page 3 and 4: CONTENTS 'Page Openin</stro
Page 5 and 6: 2874 First. Our Nation and our Fede
Page 7 and 8: 2876 Senator Domenici, of New Mexic
Page 9 and 10: 2878 (5) Dealings
Page 11 and 12: 88o Did we leave any out? Mr. HoMFI
Page 13 and 14: 2882 Mr. HALAMIANDARIS. May we have
Page 15 and 16: 2884 designed to secure publicity,
Page 17 and 18: 2886 down at that poin</str
Page 19 and 20: 2888 [The letter referred to above
Page 21 and 22: - HE-2 HE-2 OPERATOR'S STATEMENT OF
Page 23 and 24: 2892 Senator Mloss. Now, equity, is
Page 25 and 26: 2894 It is technically at the actua
Page 27 and 28: 2896 However, there are very few, f
Page 29 and 30: 2897 A year later, she sold it back
Page 31 and 32: 2899 The cost of the sale was $246,
Page 33 and 34: 2901 much the reimbursement formula
Page 35 and 36: 2903 There is no change in<
Page 37 and 38: 2905 to perhaps crowd more patients
Page 39: 2907 Senator Moss. I wonder if, s<s
Page 43 and 44: 4duI . LINEN/LAUNDRY COSTS PER BED
Page 45 and 46: 2913 matter, they do act, and they
Page 47 and 48: 2915 Senator Moss. Is that when it
Page 49 and 50: 2917 Food was not covered or <stron
Page 51 and 52: 2919 MS. JARVIS. Yes; I am. Senator
Page 53 and 54: 2921 We went through the rooms, and
Page 55 and 56: 2923 I would like to start with a s
Page 57 and 58: 2925 I do feel that bed rest and th
Page 59 and 60: 2927 Did he do everythin</s
Page 61 and 62: 2929 Rooms that could be used-such
Page 63 and 64: 2931 UNITED STATES OF AMERICA QCong
Page 65 and 66: 2933 submit it, and we will see tha
Page 67 and 68: 2935 No impropriety of any k<strong
Page 69 and 70: 2937 Did I understand you to say th
Page 71 and 72: 2939 made clear we were submitt<str
Page 73 and 74: 2941 Senator Moss. Thank you. I wou
Page 75 and 76: 2943 was married, I thin</s
Page 77 and 78: 2945 Rochdale Park, not known to me
Page 79 and 80: 2947 Dr. BERGu.rAN1. No. not plesen
Page 81 and 82: ado . 2949 Dr. 3EoG31AN. Very rarel
Page 83 and 84: 2951 A couple of housekeepi
Page 85 and 86: 2953 I think we ca
Page 87 and 88: 2955 Congressman KOCH. But give us
Page 89 and 90: 2957 Mr. NAFTALIS. Mr. Bergman, and
Page 91 and 92:
APPENDIXES Appendix 1 LETTERS RELAT
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Appendix 2 BERGMAN FAMILY NURSING H
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1-4 2963 E. Frank Klein</st
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2965 1X. Busincs.s
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2967 includ<strong
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2969 and may be deemed, in<
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2971 On January 31, 1968 First Conn
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2973 Appendix 3 SUBPENAS ISSUED DUR
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2975 UNITED STATES OF AMERICA Congr
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2977 UNITED STATES OF AMERICA iongr
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2981 UNITED STATES OF AMERICA Eongr
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2983 UNITED STATES OF AMERICA onffr
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2989 UNITED STATES OF AMERICA . IIo
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2993 UNITED STATES OF AMERICA Conre
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2997 - UNITED STATES OF AMERICA Con
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3005 UNITED STATES OF AMERICA QCong
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3007 UNITED STATES OF AMERITCA (Con
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3011 UNITED STATES OF AMERICA Ctong
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3013 UNITED STATES OF AMERICA ¢ong
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3015 d. Reason for patient's admiss
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3023 UNITED STATES OF AMERICA Conqr
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3027 UNITED STATES OF AMERICA Conay
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3031 STATE OF NEW YORK OFFICE OF TH
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Appendix 4 LETTER FROM EUGENE HOLLA
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Trends in Long-Term Care - U.S. Senate Special Committee on Aging

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