CHATTANOOGA, Tenn. (AP) – The co-founders of a Hixson nursing home business paid themselves six-figure salaries and drove company-financed Porsches while failing to pay employees, utility bills, taxes and creditors.
That’s according to court documents reported in the Chattanooga Times Free Press.
Since December, eight nursing homes operated by New Beginning Care have flunked inspections. Six have closed, including one in Youngstown, Ohio, where inspectors found residents in adult diapers “saturated” with urine or feces. Two more facilities are due to close soon.
New Beginnings will spend Friday in U.S. Bankruptcy Court in Chattanooga to try to hang on to seven nursing homes it still operates, including two in Tybee Island, Georgia.
Issues to be discussed include nearly $7 million owed to creditors including $1 million owed to the Bureau of TennCare.
Information from: Chattanooga Times Free Press
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