Attorney David Terry Testifies Before Senate Committee
March 31, 2009
For the third time, attorney David W. Terry of the Terry Law Firm testified before a committee of Missouri Legislature. Today's testimony focused on Senate Bill 467, which would require nursing home companies to carry liability insurance. Mr. Terry testified in favor of the bill and pointed out to Senate members that many of the nursing homes operating in Missouri and throughout the United States do so with a spiderweb of corporate entities designed solely for the financial benefit of their owners, rather than the residents. The corporate entities are set up to do business with each other in what are referred to as "related party transactions". David cited a recent case of his where one-third of the expenses incurred by the nursing home facility were related party transactions that directly benefitted the owner by millions of dollars. The point of this and other examples was to refute the nursing home industry position that carrying liability insurance would impose an onerous financial burden on nursing home facilities.
For the third time, attorney David W. Terry of the Terry Law Firm testified before a committee of Missouri Legislature. Today's testimony focused on Senate Bill 467, which would require nursing home companies to carry liability insurance. Mr. Terry testified in favor of the bill and pointed out to Senate members that many of the nursing homes operating in Missouri and throughout the United States do so with a spiderweb of corporate entities designed solely for the financial benefit of their owners, rather than the residents. The corporate entities are set up to do business with each other in what are referred to as "related party transactions". David cited a recent case of his where one-third of the expenses incurred by the nursing home facility were related party transactions that directly benefitted the owner by millions of dollars. The point of this and other examples was to refute the nursing home industry position that carrying liability insurance would impose an onerous financial burden on nursing home facilities.
