I have blogged more than once on the issue of liability insurance for nursing home neglect. There is no requirement that nursing homes carry liability insurance, even if they receive state and federal funding. Some nursing homes chose not to carry insurance, hoping that the lack of insurance will keep them from being sued.
In San Bernardino, a family of a man who committed suicide in a nursing home that was supposed to follow strict suicide prevention measures, is learning the lessons of the uninsured first hand. According to a lawsuit filed by the family of Lance MacPherson , the operators of Del Villa Rose are the de facto owners and operators of four other nursing homes, but each nursing home is separately licensed and "owned" by a different family member. By setting up this complex network of nursing home ownership, this family is deliberately trying to shirk its responsibilities to provide adequate care or be held accountable. In the wake of a catastrophic outcome, such as Mr. MacPherson's suicide, the individual owner can simply claim bankruptcy and hope to walk away unscathed.
But MacPherson's lawyers have another plan. They have filed the claim against not only the individual family member and company which operates Del Villa Rosa, but the family members who "own" the other 4 homes as well. Hopefully, by exposing this dishonorable practice of setting up shell corporations, Mr. MacPherson's family will get the justice they deserve.
My tip for the day: when considering a nursing home or assisted living facility, you should always ask whether they carry liability insurance. This doesn't mean you are litigious or expecting a bad outcome. Instead, you should make the inquiry because responsible business owners carry insurance. If the business owner has made a conscious choice not to carry liability insurance, you should question whether they are being responsible in other aspects of their business.
