essex commissioners call for stronger nursing home reporting requirements to protect residents and taxpayer funds

(Newark, NJ) – December 8, 2025 – on Wednesday, December 3, the Essex County Board of County Commissioners voted unanimously to pass a resolution, sponsored by Commissioner Brendan Gill, urging the New Jersey State Legislature and Governor Murphy to pass into law bill S1948/A1872, which would strengthen financial and ownership reporting requirements for nursing homes.

“The data outlined in this resolution is deeply troubling, especially as New Jersey invests more than $2 billion in nursing facilities each year with increasingly unclear accountability for how those funds are spent,” said Essex County Commissioner Brendan Gill. “This legislation is an important step toward ensuring public dollars are used lawfully, transparently, and effectively. Our seniors built our communities, and they deserve nothing less than dignity, respect, and responsible stewardship of the funds entrusted for their care.”

The State of New Jersey allocates over $2 billion of taxpayer funds to nursing homes annually. According to analyses commissioned by AARP New Jersey and conducted by Full Financials, LLC, between 2021 and 2023, New Jersey nursing home owners transferred nearly $2 billion to related parties – companies they own – including $285 million in overpayments, amounts paid beyond the price of comparable services, facilities, or supplies that could be purchased elsewhere. In 2023, 82% of New Jersey nursing homes reported related-party payments exceeding $716 million, with $82 million of excess allowable costs, raising serious concerns about the diversion of taxpayer dollars from resident care to private profit.

Multiple investigations and reports – including by the New Jersey Office of the State Comptroller, the New Jersey Task Force on Long-Term Care Quality and Safety, and in the Independent Review of New Jersey’s COVID-19 Response – have all called for stronger mechanisms to regulate and monitor nursing home ownership and financial practices. Poor quality care also remains a persistent issue in New Jersey nursing homes, with the New Jersey Office of Inspector General finding 363 deficiencies in just 20 low-performing facilities during a 2022 audit, including violations related to infection control and emergency preparedness.

Bill S1948/A1872 would require nursing homes to submit audited, consolidated financial statements, including related party transactions, and review by an independent CPA, thereby ensuring accuracy and accountability in the use of public funds. This would enable the State to better assess the sufficiency of reimbursement rates, ensure taxpayer dollars are directed toward resident care, and restore public trust in the long-term care system.

The resolution passed by the Essex County Board of County Commissioners reads as follows:

RESOLUTION SUPPORTING THE PASSAGE OF S1948/A1872 REVISING REPORTING REQUIREMENTS OF FINANCIAL DISCLOSURES AND OWNERSHIP STRUCTURES OF NURSING HOMES

WHEREAS, Senate Bill No.1948/Assembly Bill No.1872 would strengthen the reporting requirements for nursing homes concerning financial disclosures and ownership structure; and

WHEREAS, the State of New Jersey allocates over $2 billion of taxpayer dollars to nursing homes each year; and

WHEREAS, analyses commissioned by the AARP New Jersey and conducted by Full Financials, LLC, revealed that between 2021 and 2023, New Jersey nursing home owners transferred nearly $2 billion to related parties – companies they own – including $285 million in overpayments, amounts paid beyond the price of comparable services, facilities, or supplies that could be purchased elsewhere; and

WHEREAS, in 2023, 82% of New Jersey nursing homes reported related-party payments exceeding $716 million, with $82 million of excess allowable costs, raising serious concerns about the diversion of taxpayer dollars from resident care to private profit; and

WHEREAS, under current financial reporting requirements, New Jersey nursing homes do not provide sufficient transparency to determine how funds paid and used related to parties, nor do they ensure that these costs are reasonable and prudent; and

WHEREAS, the use of complex ownership structures, including private equity firms and single-purpose corporations, has enabled nursing home operators to obscure financial realities, underreport profits, and avoid accountability for substandard care; and

WHEREAS, multiple investigations and reports – including  those by the New Jersey Office of the State Comptroller, the New Jersey Task Force on Long-Term Care Quality and Safety, and in the Independent Review of New Jersey’s COVID-19 Response – have all called for stronger mechanisms to regulate and monitor nursing home ownership and financial practices; and

WHEREAS, poor quality care remains a persistent issue in New Jersey nursing homes, with the Office of Inspector General (OIG) finding 363 deficiencies in just 20 low-performing facilities during a 2022 audit, including violations related to infection control and emergency preparedness; and

WHEREAS, the proposed legislation S1948/A1872 would require nursing homes to submit audited, consolidated financial statements, including related party transactions, and review by an independent CPA, thereby ensuring accuracy and accountability in the use of public funds; and

WHEREAS, such transparency would enable the State to better assess the sufficiency of reimbursement rates, ensure taxpayer dollars are directed toward resident care, and restore public trust in the long-term care system; now, therefore, be it

RESOLVED, that the Essex County Board of Commissioners hereby expresses its strong support for the passage of legislation S1948/A1872 by the New Jersey State Legislature, and its signing into law by the New Jersey Governor; and be it further

RESOLVED, that copies of this resolution shall be transmitted to the Governor of New Jersey, the President of the New Jersey Senate, the Speaker of the New Jersey General Assembly, the Essex County state legislative delegation, and the New Jersey Attorney General.