Nutrition and Sanitation Violations

Caymanmama.com had an article about problems found at Mustang Manor Assisted Living Center including 27 nutrition and sanitation-related issues..  The Oklahoma State Department of Health (OSDH) found problems with on-site cleanliness, nourishment, and the overall welfare of the elderly residents. Reports show the Mustang Manor has been cited for numerous unspecified violations of safety and health in the last two years. These issues amounted to an excess of $35,000 in OSDH-issued penalties. 

Beyond claims of safety and health hazards at the nursing home, officials from the Mustang Police Department have received complaints of criminal activity at the establishment. According to Mustang Police Capt. Willard James, “We received a call that a resident had actually written checks to an employee of the business and had them cashed to have the money returned to her, and she had not received those funds.”

Often the two major areas where a nursing home can cut operating costs to improve profits is staffing and nutrition.  Many nursing homes cut staffing especially of RNs and LPNs to make more money for their corporate owners. 

Nutrition and sanitation are very important to prevent pressure ulcers and infections.

SC Dept of Labor, Licensing, and Regulation

Kindred profits soar despite recession

The Courier-journal had an interesting article showing how profitable Kindred nursing home chain has been this year and how they rely on "managing" labor costs to insure profitability.  This euphemism means they are understaffed.  

Kindred Healthcare's profits rose 55 percent in the first quarter of the year as the company offset a slight drop in patients by managing costs more closely, especially labor.   Net income was $22.8 million, or 58 cents per share, compared with $14.7 million, or 37 cents per share, a year earlier.

Income from continuing operations  was 57 cents per share, compared with 42 cents per share in the first three months of 2008.   The continuing-operations figure exceeded Wall Street analysts' average expectation by 13 cents per share and also topped Kindred's own previous forecast of 40 to 50 cents per share.

The Louisville long-term care company said it expects its full-year earnings to be $1.35 to $1.45 per share, the same amount it forecast in February.  That means the company can absorb a proposed Medicare cut in nursing-home reimbursements without a drop in earnings. 

Overall revenue for the January-March period was $1.08 billion, up about 3 percent.    Kindred shares rose 9 percent yesterday, adding $1.27 to close at $14.91. The latest earnings were released last night after the market closed.

See full report here.

 

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