A management company that runs nursing homes in California is being sued for allegedly diverting $1.8 million in COVID-19 relief funds meant for the nursing homes to its corporate use (read here). The lawsuit claims that the company submitted false claims to obtain the funds and used them to pay for unrelated expenses. The funds were intended for the nursing homes’ COVID-19 response efforts, such as purchasing personal protective equipment and hiring additional staff.
Attorney Mysty Blagg
Attorney Mysty Blagg was quoted in the article saying, “the complex ownership schemes for some skilled nursing facilities and chains can put them under an “enforcement microscope … private equity and capable nursing facility ownership is an odd, potentially concerning relationship.
