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

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Mr. LEWIN. Let me expla<strong>in</strong>, if I might, a loans and exchange is not
a current expense of any k<strong>in</strong>d.
It is not add<strong>in</strong>g anyth<strong>in</strong>g that is considered an expense on the part
of a bus<strong>in</strong>ess to operate.
If we operate, as I said, a candy store, for example, and <strong>in</strong> order to
have the candy store have cash that can be generated and used <strong>in</strong> the
bus<strong>in</strong>ess, I personally loan money to the candy store, which is my
family bus<strong>in</strong>ess, at the beg<strong>in</strong>n<strong>in</strong>g of the month, and I would probably
return it at the end of the month, but it is not an expense <strong>in</strong> any way.
It does not appear <strong>in</strong> any way on any expense sheet, that could affect
the medicaid rate <strong>in</strong> any way.
It is a family bus<strong>in</strong>ess, and that is true of nurs<strong>in</strong>g homes generally.
A nurs<strong>in</strong>g home is a family bus<strong>in</strong>ess. It is not a corporation. It is a
partnership.
Mr. HALAMI.ANDARTS. Forgive me, counsel. May I <strong>in</strong>terject at this
po<strong>in</strong>t.
I ask you if these were <strong>in</strong>deed loans and exchanges, why were they
not reported <strong>in</strong> the books of these homes' loan and exchange account.
Air. LEwIN. As I understand, they were.
Mr. HALATMEANDAmIs. All right. We will exam<strong>in</strong>e the books and
records.
Mr. LEwrINT. That is the problem of work<strong>in</strong>g on a leak out of the
welfare <strong>in</strong>spector general's office, where somebody has decided that he
is go<strong>in</strong>g to defame a particular <strong>in</strong>dividual.
If you accept his assertion as true, without exam<strong>in</strong><strong>in</strong>g the books,
without question<strong>in</strong>g what the basis for it is, then you reach a certa<strong>in</strong>
conclusion, but we submit there is no way that can be tied to
a medicaid expense.
Senator Moss. Dr. Bergiman, there have been press reports that you
were <strong>in</strong>volved <strong>in</strong> a large number of nurs<strong>in</strong>g homes, either you, or
through your family connections, and I do not know how far out that
would reach.
I wonder if you could submit your family relationships, and the
<strong>in</strong>volvement with nurs<strong>in</strong>g homes.
Dr. BERGMAN. I would be very glad to do that.
Senator Moss. Through your sons, your wife, your parents, any of
your collateral relatives.
Dr. BERGMIAN. Yes.
Senator Moss. I-low long have you been <strong>in</strong> the nurs<strong>in</strong>g home
bus<strong>in</strong>ess?
Dr. BERGMAA\N. Thirty years.
Senator Moss. Thirty years?
Dr. BERGMAN. Approximately 30 years.
Senator Moss. Has it been a profitable venture for you, have you
realized a reasonable <strong>in</strong>come from it?
Dr. BERGIM.AN. Well, it depends on what you mean by profitable.
I say it is very little profitable, when you consider a certa<strong>in</strong> system
that we have been work<strong>in</strong>g under.
I am sure that the time, effort, and <strong>in</strong>vestment that a person would
make <strong>in</strong> any other bus<strong>in</strong>ess, they could do much better, and with less
responsibility, and I want to, Mr. Senator, at your request, to give
you exactly the names of the nurs<strong>in</strong>g homes that we are <strong>in</strong>volved <strong>in</strong>,
and our operations.