Lawsuits allege 2 Kentucky nursing homes were unstaffed, paid services not provided
Major political donor Terry Forcht, and two nursing homes he owns, have been sued in dual, class action lawsuits alleging the homes were understaffed, court records show.
The lawsuits accuse Forcht, Hazard Health and Rehabilitation Center and Barbourville Health and Rehabilitation Center of "siphon(ing) funds and assets away from the direct care givers at the facility.”
Stephen Garcia, an attorney representing the plaintiffs, said they want to ensure this problem does not happen in the future.
"The plaintiffs of this action, rather than seeking to do something for themselves, are trying to advocate on behalf of the public good and change the methodology by which Forcht and his team and the nursing homes provide care so that it is lawful, appropriate and responsible," Garcia said.
"We have filed motions to dismiss these two lawsuits, and we believe they should be dismissed because they have no merit whatsoever," Michael Merrick, an attorney representing Forcht, both nursing homes, and the two companies that manage the nursing homes − SEKY Holding Co. and Management Advisors Inc. − told The Courier Journal via email.
The lawsuits
The lawsuits allege Forcht and the companies that manage the nursing homes — Management Advisors Inc. and Seky Holding Co. — are violating state and federal laws, including one that establishes "sufficient" licensed nurses and nurse aides all day to all residents.
The number of staff required by law to work in each nursing home is determined by residents' needs, according to court documents.
The lawsuits are asking the court for an injunction to make both nursing homes meet standards and that if violated, "it can be enforced, so that there are consequences to the choice to take money and line one's pocket opposed to providing adequate care," Garcia said.
Members of the lawsuit who paid for services (some people have benefits paid through Medicare or Medicaid), are asking for reimbursement for services not provided.
"Citizens of the communities in which these nursing homes sit, deserve responsible care, care that meets the legal standards, care that is appropriate for their needs, and for which these nursing homes get paid tens of thousands of dollars in taxpayer dollars through Medicare and Medicaid," Garcia said.
Garcia said his law firm used data from the Medicare Cost Report and a payroll-based journal that Centers for Medicare and Medicaid Services publishes to determine the percentages of understaffing and hours worked by the caretakers per resident population dating to 2019 and 2018.
The document says Hazard Nursing Home “provided approximately 79% less registered nurses and 6% less total nursing hours than that which was required for the resident population in 2019.” In 2020, it provided "74% less registered nurses and 9% less total nursing hours than that which was required for the resident population."
In 2023, Hazard Nursing Home received an above-average score by Medicare for staffing. However, Garcia says the data is provided by the nursing home and is “inaccurate.” The nursing home's overall rating was two out of five stars.
"The plaintiffs of these cases are hoping to change the way care is delivered in Mr. Forcht's facilities and the only way to do that is on a classwide basis," Garcia said.
Both nursing homes and Forcht have been named in several other lawsuits. Two other ongoing cases — one against Hazard Nursing Home has been ongoing since 2012 and one against Barbourville Nursing Home has been ongoing since 2016 — allege negligence by the nursing homes, according to court records.
Who is Terry Forcht?
Forcht is the founder, chairman and CEO of Forcht Group, which is made up of 94 companies in Kentucky, including banks, insurance companies and nursing homes, with more than 2,100 employees, the company's website says.
Nursing Homes Database, a website that gives insights on skilled nursing homes in the country based on data from The Centers for Medicare and Medicaid, said Forcht owns eight nursing homes, all in Kentucky. Six of these nursing homes have one or more active lawsuits against them, including the two mentioned above and the class action lawsuits.
Garcia says it's important to hold the nursing home owners accountable.
“Engaging in Machiavellian corporate gamesmanship to hide one's responsibility is unacceptable," Garcia said. "The plaintiffs in this action seek justice for the one who is ultimately responsible. The true owner.”
But Forcht's influence in Kentucky goes beyond his companies.
Forcht is one of the state's biggest Republican donors. He most recently donated to the 2022 Kentucky elections through the PAC Kentucky Capitalism and Freedom Committee. But, in 2019, he gave more than $100,000 to Gov. Matt Bevin’s campaign.
In 2019, Forcht sent a note to Bevin lobbying for a pardon for convicted killer Patrick Baker. The letter ended with him asking the former governor to call him on his personal cell phone if he needed more information, The Courier Journal previously reported.
"I would like to renew my recommendation for him to receive a Gubernatorial Pardon," Forcht wrote on June 4. “I continue to follow his story and feel he would be a good candidate. I know his family and still feel he has turned his life around."
Correction: This story has been updated to correct Michael Merrick's name.
Reach Ana Rocío Álvarez Bríñez at abrinez@gannett.com; follow her on Twitter at @SoyAnaAlvarez.
This article originally appeared on Louisville Courier Journal: Terry Forcht, 2 nursing homes, face class-action lawsuits
