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

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2910 The 200 to 250 bed, we f<strong>in</strong>d the same situation, $22 per bed versus $11, and the 250 to 350 bed, we f<strong>in</strong>d $17.50 versus approximately $11.50. Aga<strong>in</strong>, not too serious. possibly only a 50-percent variance. Now, we have been told by various people that it costs more to take care of an old home than it does a newer home, so we said f<strong>in</strong>e. The age of the homes are down here. Over here we have a 27-yearold facility. It costs $19.50 a week per bed to take care of that facility, and it is 27 years old. Obviously, it costs more to take care of that than it does one that is younger. Over here we have a 1-year-old home, which costs $22.50 per week per bed, which is more than a 27-year-old home. The costs on these run anywhere from $800 a week for housekeep<strong>in</strong>g to $5,000 a week for housekeen<strong>in</strong>c per home. You asked me earlier, Mr. Halamandaris, why might it be profitable to buy <strong>in</strong>to a nurs<strong>in</strong>g home operation. We have found one consistency <strong>in</strong> this whole pattern. If you will notice, there are C's at the top of some of those bars. That means those services are contracted out to vendors. We are currently try<strong>in</strong>g to f<strong>in</strong>d out who the vendors are, and if the cost to the vendors is <strong>in</strong>creas<strong>in</strong>g the cost to the nurs<strong>in</strong>g home, and, if so. why. Mr. HALAMANDARIS. Have you done a study show<strong>in</strong>g identity of <strong>in</strong>terests between the vendors and the nurs<strong>in</strong>g home, <strong>in</strong> other words, the same people own both? Mr. LEE. We have several <strong>in</strong>stances of that, but we have more, to the po<strong>in</strong>t, I th<strong>in</strong>k you may have seen earlier. we have found a strange set of patterns, where certa<strong>in</strong> vendors are deal<strong>in</strong>g with certa<strong>in</strong> nurs<strong>in</strong>g homes. If you have four vendors show<strong>in</strong>g at one nurs<strong>in</strong>g home, you have the same vendors show<strong>in</strong>g up at a second. and the same show<strong>in</strong>g up at a third, fourth. and so forth. Now, it would be f<strong>in</strong>e if these vendors were deal<strong>in</strong>g across the <strong>in</strong>dustry, we would have no question about it, but why are they selective? We do not know. It is a fairly simple question. I am not answer<strong>in</strong>g it. I am just ask<strong>in</strong>g it. We have one here deal<strong>in</strong>g with every home. No questions asked. Obviously they are nurs<strong>in</strong>g homes across the board. What makes them preferable to the others, or the others preferable to them? I have no answers. I have only questions. It is up to you gentlemen to get the answers. Senator Moss. Does the department of health do any <strong>in</strong>spection of, or regulat<strong>in</strong>g of vendors? Mr. LEE. It is not <strong>in</strong> their mandate, sir. Senator Moss. It is not? Mr. LEE. No, sir. Mr. HALAMANDARiS. Does anybody regulate them? Mr. LEE. Does anybody regulate them? Mr. HALAMANDARIS. Yes. Mr. LEE. I understand the operators try to. Mr. HALAMANDARIS. The operators try to? Mr. LEE. Yes, sir. Let me give you one other example of this type of potential, and that is, these are the laundry and l<strong>in</strong>en costs per bed per week, for the same variety of nurs<strong>in</strong>g homes, from 50 up to 350 beds, <strong>in</strong> group<strong>in</strong>gs of 50.
4duI . LINEN/LAUNDRY COSTS PER BED PER WK A B C D E F G H I J 50/100 BEDS 100/150 150/200 K IL M N 0 200/250 250/350
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 and 40: 2907 Senator Moss. I wonder if, s<s
Page 41: $23 22 21 I., 19 18 17 16 15 14 2 2
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
Page 93 and 94:
Appendix 2 BERGMAN FAMILY NURSING H
Page 95 and 96:
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<
Page 103 and 104:
2971 On January 31, 1968 First Conn
Page 105 and 106:
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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