Paul M. da Costa Quoted in NJ.com Article, “Inside the ‘Multibillion-Dollar Game’ to Funnel Cash from Nursing Homes to Sister Companies”

By Ted Sherman, NJ Advance Media for NJ.com, Susan K. Livio, NJ Advance Media for NJ.com and Matthew Miller, MLive.com

Using side businesses to provide management, housekeeping, food and other services enabled nursing home owners to generate nearly $3 billion over and above the actual costs of those services in 2023, data shows.

‘The Russian Doll Scenario.”

For nursing homes doing business with companies under the same ownership, the federal government sets a standard for Medicare for costs that a “reasonably prudent buyer” might pay on the open market.

Those kinds of arrangements are no surprise to attorney Paul da Costa, who has sued several long-term-care operators over allegations of failure of care. He described the business as “the Russian doll scenario,” referring to the iconic Matryoshka nesting dolls that stack within each other.

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