I have written here before about the dangers of signing an arbitration agreement when you admit your family member to a nursing home. The effect of this legal document is that the home can sue the resident for non-payment of fees, etc. but the resident (or resident’s family if they died as a result of poor care) cannot sue the nursing home for its negligence. Doesn’t seem fair does it?

Now the big corporations which own (and profit from) nursing homes have devised yet another way to avoid accountability. The corporate owners of nursing homes are now setting up “shell corporations” to operate the facility. These shell corporations have no assets and no insurance. The owner of the building and the property on which it is built “skims off” the profit by charging excessively high rents from the corporate operator of the nursing home….thereby making the operator penniless and uninsured. The result is the true owner of the nursing home makes its profits in the way of exorbitant rent but has no exposure to claims for poor care! Like taking candy from a baby!

Don’t believe me? Read what Consumer Reports has to say about this scheme!

Dan Frith
Dan Frith

Dan Frith has over 25 years of experience representing individuals and families in cases of medical malpractice throughout Virginia. He has been named "Best Medical Malpractice Attorney" by Roanoker Magazine and is a member of the Million Dollar Advocates Forum. To speak with Dan, contact him by email at