Healthcare News & Insights

Nursing home slapped with $670M penalty for understaffing

A lawsuit over the number of hours of care nursing home residents received has concluded with a hefty verdict against the home.

Skilled Healthcare Group Inc., based in Foothill Ranch, California, faced a class-action lawsuit for not providing adequate nursing time to its residents.

California law requires nursing and assisted living facilities provide enough staff to provide a  minimum of 3.2 hours of care per patient per day. According to the lawsuit, Skilled Healthcare routinely understaffed by up to 40%.

A jury agreed, and awarded plaintiffs $613 million in statutory damages (the maximum allowed by state law) as well as $58 million for restitution. Punitive damages are still to be decided.

Skilled Healthcare said it will appeal the decision.

The company operates approximately 100 nursing and assisted living facilities in seven states.

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