Website | GoldenLivingCenters.com |
Number of Facilities | 23 |
Headquarters | 2647 Waterfront Parkway East Dr Indianapolis, Indiana 46214 |
Year founded | 1963 |
Type of Care Provided | Rehabilitation Therapy Nursing Care Alzheimer’s & Dementia Care Hospice & Palliative Care Cardiac Care Pharmacy Services |
Golden Living is yet another nursing home chain whose quality of care markedly declined after it was taken over by a private equity firm. Golden Living was acquired by Fillmore Equity Partners in a leveraged buyout in 2006. These transactions rely on debt to finance the transaction. Often, when this happens, the owners will either sell or trim pieces of the business in order to finance the debt.
Private equity companies have also been known to trim related services, reducing levels of sufficient nursing staff in the name of maximizing profits for their investors. Many of the largest nursing home chains were acquired in the last private equity boom and are experiencing similar issues. Golden Livingcenter has numerous companies that operate nursing homes in its name.
In some instances, the chain yielded the operating licenses of some of its homes under pressure, but still continues to own the real estate under the nursing homes and charge rent. Many nursing homes, especially those owned by private equity, engage in related party transactions. In Golden Living’s case, this has resulted in financial distress for some of the homes. The chain had to surrender seven homes in Pennsylvania after the subsidiary that was operating the homes ran out of money
Neglect (Lawsuit Filed ) in California – A 91-year resident died after being diagnosed with scabies. The woman was admitted to the facility after suffering a stroke. The lawsuit alleges that the facility neglected her basic care and she developed numerous infections as a result.
Lawsuit filed in South Dakota – An elderly resident sued the nursing home alleging that an employee of the home took a nude picture of the resident and posted it online to social media. The employee at issue was arrested for the incident and charged with a misdemeanor for secretly recording the body of a person. The employee served three days in prison for the incident. This incident was detailed in a government inspection report.
Settlement ($72 million) in Arkansas – A group of 12 former residents sued the nursing home chain under Arkansas state law for its chronic understaffing of its nursing homes. The nursing home was alleged to have staffing levels that failed to comply with Arkansas state laws and regulations and was far below the other nursing homes located in the state. The nursing homes’ owners were alleged to have known of these staffing issues, but nevertheless maintained the staffing levels where they were. This resulted in widespread provision of inadequate care at these facilities. This suit was a class-action lawsuit brought on behalf of all seniors of Golden Living’s facilities in Arkansas. This civil settlement represents a significant victory that shows that nursing homes that do not follow regulations can successfully be sued for their failures.
Pennsylvania State Lawsuit – The State of Pennsylvania filed suit against Golden Living for inadequate and slipshod care afforded by the chain’s 25 homes in Pennsylvania. The state is seeking financial penalties from the company for violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law. A Pennsylvania court ruled that the company conducted false advertising regarding the care at its homes. In addition to those impacted by the care, the Pennsylvania Supreme Court held that the state could seek restitution from the nursing home as well. This is an important arsenal for states as they seek to recover for subpar care provided by nursing homes.
Settlement ($88,000) in Pennsylvania – Staff allegedly gave resident solid foods when they were not able to eat them. As a result, the resident developed aspiration pneumonia and died. The lawsuit claimed that there were physician’s orders for staff to perform a respiratory assessment and to follow aspiration precautions and the Golden Living Center Facility did not do so..
Jury Verdict ($2.5 million) in Alabama – A 62-year old man was committed to the care of the facility after he suffered from two strokes. The resident had a catheter, but the facility allegedly