"In 2021, a CalMatters investigation documented that the state Department of Public Health allowed Rechnitz and his companies to operate 18 nursing homes while delaying a decision on granting licenses to them. The state had kept the license applications in a "pending" status for seven years after he acquired them. Rechnitz and his companies were allowed to continue operating five additional homes even after the state denied licenses to them."
"Another key revelation from that case: Rechnitz and his wife disclosed their net worth. According to financial documents filed in court, it comes to $786 million. Tony Chicotel, a senior staff attorney for California Advocates for Nursing Home Reform, said that dollar figure hasn't been divulged publicly before. "At least in some of these chains, the money that was meant to go for patient care is being stripped away and sent up top to the ownership," he said."
In 2021, the state Department of Public Health allowed Shlomo Rechnitz and his companies to operate 18 nursing homes while keeping license applications in pending status for seven years after acquisition. Rechnitz's companies also continued operating five homes even after the state denied licenses. Pending and upcoming cases include a Shasta County negligence trial connected to 24 COVID-19 deaths and a case alleging 78-year-old Barbara Pendley died from severe dehydration at North Point Healthcare & Wellness Centre in Fresno. Court documents describe missed transports that led to skipped chemotherapy and the death of Doherty from a large pressure sore; his family received $7.6 million. Financial disclosures filed in court list Rechnitz and his wife's net worth at $786 million. Advocates contend funds meant for patient care were diverted to ownership and call for stronger regulatory accountability.
Read at Kqed
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