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More Legal Trouble for Elder Care Operator
Date:8/22/2008

it is, in fact, cheating its residents and misrepresenting itself to prospective residents.

The complaint charges that the corporate officers, directors and managers of the company and of the homes deliberately keep the budgets so tight that appropriate staffing cannot be provided so that residents do not receive the care they need and should be getting, and for which they are paying. Extendicare uses false advertising to lure in unsuspecting prospective residents, thereby increasing its profits by charging for services that are not provided.

"Basically, we believe that Extendicare's corporate strategy and policy is to maximize profits at the expense of the elderly and vulnerable people it claims to serve," says Garcia. "We all know that there is a direct correlation between elder abuse and staffing levels. In my opinion, the Extendicare facilities in Washington are elder abuse cases waiting to happen. It's just a matter of whose parents or grandparents are going to be the victims."

Extendicare Homes, Inc. is a subsidiary of Extendicare Health Services, Inc. and is the licensee of a number of long-term nursing facilities. In the United States, Extendicare Health Services, Inc., (EHSI), based in Milwaukee, Wisc., is a wholly owned subsidiary of the Canadian company Extendicare Real Estate Investment Trust (Extendicare REIT). The company (symbol: ALC) is listed on the New York Stock Exchange.

Extendicare Health Services, Inc. operates, according to its website, 191 senior care facilities in the United States with approximately 19,200 beds.

Extendicare's problems seem to range across the country. A July 27, 2008 article in the Milwaukee Journal-Sentinel reported that Extendicare owns 26 nursing homes in Wisconsin. Twenty of them have been cited for at least one serious care violation in the past three years. The article also reports that in 2005, Extendicare paid $2.3 million to Wisconsin in a civil settlement over serious nursing hom
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SOURCE The Garcia Law Firm
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