Seniors Housing Weekly Update - Brookdale and Emeritus Need Better PR
March 12, 2013
Brookdale and Emeritus Need Better PR
For the past week, all the tongue-wagging has been about the poor employee at a Brookdale Senior Living community in California who did not perform CPR on an 87-year old woman who passed out. And now it is the recent jury trial that Emeritus lost, with a $3.875 million judgment for pain and suffering, reduced to California’s cap of $250,000, followed by $23 million in punitive damages awarded by the jury in the wrongful death and elder abuse lawsuit. And you thought this only happened to nursing homes. Emeritus will appeal and may win on appeal. But that’s not the point. In both cases, the two companies seemed to be caught a little flat-footed in their response and preparation, and that is just not excusable for two industry leaders. To make matters worse, we have heard that Frontline was allowed to film the Emeritus trial, and guess what will be featured in its upcoming “documentary” on assisted living and Emeritus? And now management is selling shares in a secondary. Talk about bad timing and a public relations nightmare. Tsk, tsk.