AI Article Synopsis
- The article discusses the need for ethical and legal accountability for lawyers representing private equity firms in the nursing home industry, highlighting the negative impact on residents and inflated Medicaid costs.
- It suggests that private law offers mechanisms, such as aiding and abetting and fiduciary doctrines, to hold these lawyers accountable for their actions, ensuring they protect vulnerable beneficiaries.
- The author advocates for changes in the Professional Responsibility curriculum to encourage law students to think critically about how their legal practices affect third parties, particularly in health care financing.
Article Abstract
This article proposes ethical - and legal - accountability for lawyers representing clients such as private equity (PE) firms who create ownership structures for nursing home systems. Using PE ownership as a case study, I will show that nursing home residents are often harmed and Medicaid costs inflated. I propose private law provides tools to compel such accountability, through (1) aiding and abetting doctrines and (2) fiduciary doctrines that require that the fiduciary be responsible for its vulnerable beneficiaries, not just ethically but for damages and equitable relief. I further propose that the teaching of Professional Responsibility needs to be changed to force law students to consider the effect of legal practice on third parties in situations like health care financing.
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| http://dx.doi.org/10.1017/jme.2024.115 | DOI Listing |
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