How delays and bankruptcy let a nursing home chain avoid paying settlements for injuries and deaths
Genesis HealthCare, once the largest nursing home chain in the nation, is facing a wave of lawsuits and financial troubles that have led to a bankruptcy filing. The company, which has been accused of neglect and mistreatment of residents, is now using the bankruptcy process to avoid paying out settlements to the families of those affected.
One such case involved Nancy Hunt, who arrived at an emergency room from a Genesis HealthCare nursing home in Pennsylvania in a horrific state, with maggots infesting her gangrened foot. Despite her son’s lawsuit alleging elder abuse, Genesis denied any wrongdoing but agreed to a $3.5 million settlement. However, court records show that most of this debt remains unpaid, and Genesis may never have to pay it.
The company’s bankruptcy filing revealed that it had liabilities totaling $259 million from settled and pending lawsuits. Despite knowing about its insolvency, Genesis included provisions in settlement agreements that allowed them to defer payments for a year or more. As a result, Genesis has paid nothing in 85 cases and only a portion in the other 70, leaving $41 million still owed.
Families of the victims, like Vanessa Betancourt whose mother Nellie Betancourt died after a stay at a Genesis home in New Mexico, feel that the company has gotten away with negligence. Despite agreeing to a $650,000 settlement, Genesis has not paid any of it, citing the bankruptcy process.
The company’s history of low ratings and fines from federal regulators further highlight the poor quality of care provided at Genesis facilities. Multiple cases of neglect, abuse, and even sexual assault have been reported, leading to significant financial liabilities for the company.
The use of bankruptcy as a tool to avoid paying settlements has raised concerns among families and lawmakers. The process allows nursing home owners to escape accountability for their actions, leaving families without justice and closure. Despite facing maddening delays and obstacles in court, families continue to fight for justice for their loved ones affected by the negligence of companies like Genesis HealthCare.
