A Milwaukee attorney filed a class-action lawsuit Friday against
Extendicare Homes that alleges the nursing home chain fraudulently
advertised its services and deliberately admitted more acutely ill
residents without hiring enough staff to properly care for them.
The
lawsuit alleges Extendicare violated the state's Consumer Protection
Act through false advertising that lured residents into believing they
would receive good care at nursing homes that were cited for health
violations by state regulators.
The
complaint also contends the company's "24/7 Extendicare Admission
Policy" was designed to automatically admit patients who have acute
medical conditions such as hepatitis B or who require dialysis or
therapy. Nursing homes are reimbursed at higher rates for more acutely
ill residents.
The
goal of this policy, also known as the "Green Flag" policy, is to admit
the sickest patients regardless of a nursing home's staffing level,
alleged Jay Urban of the Milwaukee law firm Urban & Taylor, who
filed the suit. The Madison law firm Boller & Vaughan are
co-counsel in the lawsuit.
"They
are putting profits ahead of people," Urban said. "You can't take in
higher acuity people unless you provide higher acuity care."
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