A Humboldt County jury orders Skilled Healthcare Group to pay damages for understaffing at its 22 assisted-living facilities in California.
By Nathan Olivarez-Giles - July 8, 2010
Nursing home operator Skilled Healthcare Group Inc. was
ordered Tuesday to pay more than $670 million in damages for
understaffing at its 22 assisted-living facilities in
California.
The verdict against the Foothill Ranch company came in
Humboldt County Superior Court in a class-action lawsuit
brought by patients and family members. The jury found that
Skilled Healthcare violated the California health and safety
code that requires nursing homes to maintain 3.2 nursing
hours per patient per day, said Tim Needham, one of the
plaintiff group's lawyers.
The jury imposed the maximum damages for violating the state
statues, plus $58 million in restitution, according to a
company statement.
But more damages are possible. The jury will begin meeting
next week to determine whether Skilled Healthcare should
also pay punitive damages.
The company said in a statement it will appeal.
"We are deeply disappointed in the verdict," Boyd
Hendrickson, chief executive of Skilled Healthcare, said in
the statement. "We strongly disagree with the outcome of
this legal matter, and we intend to vigorously challenge
it."
News of the verdict caused the publicly held company's stock
price to plunge nearly 75%, to $1.52.
The company has about 14,000 employees. In the first
quarter, it had about $189 million in revenue and a profit
of $8.9 million, according to a filing with the Securities
and Exchange Commission.
Needham said the deficiencies in staffing levels put
patients in peril. "The company knows that this lack of
staffing causes a higher risk of problems for patients," he
said. "Call lights don't get answered, persons don't get
proper hygiene, persons don't get their medications on time
or the care they need."
The suit only applies to assisted-living facilities operated
by the company in California. Skilled Healthcare owns others
in Arizona, Iowa, Kansas, Missouri, Nevada, New Mexico and
Texas.
reprinted from the Los Angeles Times