By any reasonable standard, these are tough times for many nursing home operators. And the industry has spared no effort making sure that message gets heard.
The American Health Care Association released a bombshell report suggesting up to half the nation’s facilities may be on the brink of ruin.
More recently, LeadingAge called on the Biden Administration to enact a six-step relief package. Among its bigger asks: a $5 per hour wage increase and a $2,000 payout to qualified direct care workers.
As pro-industry efforting continues, fiscal relief is coming in dribs and drabs. At least, dribs and drabs by the usual Washington standards. Last week, for example, another $2 billion in Provider Relief Funds became available.
Lawmakers seem to be sympathetic to the industry’s plight. That goes for the general public as well. But an ill-timed splashy purchase threatens to put empathy on hold.
For this we can thank Mohammad Qazi. What did he do wrong, you ask? Nothing illegal or immoral, but he’s hardly providing assistance to the notion that this sector needs financial assistance in a really big way.
The 59-year-old businessman owns a chain of facilities based in Michigan, as well as a few more buildings in Connecticut. By all indications, he is not one of the industry’s many struggling operators.
In fact, he just plunked down $26 million to purchase a swanky 14,000 square foot retreat in the lower Hollywood Hills. As you might expect, it’s not exactly a starter home. That is, unless your idea of a starter home includes a cryotherapy chamber, hot yoga studio, movie theater and two pools.
To be clear, Qazi is hardly the first or only person to make a financial killing in the nursing home business. Truth be told, there are more than a few owners and note holders living high on that particular hog. But his contemporaries tend to stay clear of buying sprees that would embarrass Arabian Peninsula monarchs. Or to at least make sure such acquisitions are not trumpeted to the masses.
Any way you look at it, the optics here are not good. In fact, this is just the sort of thing that could give taxpayers and lawmakers the wrong idea.
John O’Connor is Editorial Director for McKnight’s.
