Inside a $110 Million Verdict: Private Equity, Assisted Living, and the Hidden Risks of Rehab

Sacramento attorney Ed Dudensing joins Harry to discuss nursing home and assisted living litigation, including his $110 million verdict against corporate owners Colony Capital and Formation Capital after a cognitively impaired 100-year-old resident with dementia wandered out an unalarmed second-floor door, was locked outside, fell, and died of exposure on a 38–39° February night. Dudensing describes how assisted living is less regulated yet increasingly houses higher-acuity residents, and how layered holding-company structures can leave licensees assetless while top entities control budgets. He explains why private equity and REITs invest despite claims that Medicaid rates are inadequate, citing higher Medicare reimbursement and profit strategies including high-acuity “short-stay rehab” marketing and related-party transactions that shift costs. He supports staffing minimums, notes studies linking private equity ownership to worse outcomes, urges hospital accountability for discharge placements and ownership transparency, and advises families to visit unannounced and trust their instincts.

 

Topics

00:24 Meet Ed Dudensing

01:11 Why He Sued Facilities

02:23 110 Million Verdict

03:32 How Neglect Happened

04:56 Following the Money

08:11 Private Equity Playbook

10:27 Medicaid Myth Explained

16:07 Staffing and Outcomes

18:09 Nonprofit vs For Profit

19:48 What States Can Do

22:15 Rehab Marketing Trap

24:12 Policy Fixes

25:48 Advice for Families

27:00 Closing Thoughts