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How Elder Abuse Caused A Nursing Home Network Collapse

On Behalf of | Apr 26, 2016 | Personal Injury |

Not long ago we told you about the closing on a nursing home in Jeffersonville-not far from Macon. Well we now have some updates on the company that ran that nursing home, and the picture these details paint makes this operation look even more dangerous for seniors across Georgia and many other states.


New Beginnings is a nursing home administration business that helps run nursing homes from Ohio to Tennessee, and though the company has always had a good reputation, things soured in 2013. That’s when John M. Reed Nursing Home started receiving complaints from vendors about non-payment, and utility and tax bills were turning up unpaid. Inspections soon found that the facility was understaffed due to non-payment and the seniors were suffering neglect because of this deficiency. Medicaid and Medicare quickly pulled their funding, just like they did for Jeffersonville Health & Rehab.

Did Mismanagement Of Funds Lead To Neglect?

John M. Reed Nursing Home has since fired New Beginnings from administrating its facilities, but the damage done to its reputation is expected to last for years. This same rash of non-payments by the New Beginnings group has led to the closing of at least eight nursing homes this March, and even more nursing homes seem to be losing patients due to allegations of neglect.

News agencies have uncovered that the two founders of New Beginnings were making $36,000 and $24,000 a month-respectively-and each executive had Porsche sports cars financed by their company. Such apparent mismanagement of funds seems to have led to serious negligence and elder abuse. It is estimated that the company owes the state of Georgia more than $3 million in unpaid bed taxes, it owes one Georgia finance company $2.8 million, and it owes almost $7 million to unsecured creditors in general.

Now New Beginnings is trying to maintain management of seven “keeper” nursing homes while abandoning eight other nursing homes that are either closing or have already been closed. Meanwhile hundreds of residents are in limbo, wondering if they will have beds to sleep in, or if their basic living needs will be met.

It is important to keep a sharp eye on the living conditions of the facilities you have charged with the care of your elderly loved ones. So keep following our blog, Facebook, and Twitterfor more information that can help you protect the senior citizens in your life.