Jury Punches Nursing Home Company With $671 Million Fist

A jury in California has slapped Skilled Healthcare Inc. with $671 million in damages for a four-year-old lawsuit that alleged that company did not provide the required 3.2 nursing hours per day, per patient.

The verdict, unveiled Tuesday, includes $613 million in statutory damages and $58 million in restitutionary damages, the maximum damages permitted under state health law. The Humboldt County jury hasn’t determined punitive damages yet.

The WSJ says the company, which operates nursing homes in several states including California, Iowa, Kansas, Missouri, Nevada, New Mexico and Texas, has already exhausted its professional liability insurance coverage. The company has annual revenue of $760 million and employed 14,000 people as of March.

The CEO says he believes the facilities were adequately staffed and will fight the verdict.

Jury hits Skilled Healthcare with hefty damages [BusinessWeek]
Skilled Healthcare Faces Over $671 Million in Damages [WSJ]