The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Squeezing Profit from Nursing Homes

Jan 4, 2021

The private equity firm Portopiccolo Group bought more than 20 nursing homes in Maryland, Virginia, North Carolina, and other states during the pandemic. Their answer to the financial difficulties that came along with the deal was to cut workers’ pay and benefits to squeeze more profit from them.

Workers in Maryland lost paid time off, including for major holidays, and got worse health insurance plans. The new owners ended hazard pay for some workers and laid off others who had been cleaning and taking temperatures. A woman working 30 hours a week while taking classes was told she had to work more hours to keep her health insurance. In 2019 the company told a bank it expected to save hundreds of thousands of dollars in North Carolina by making similar cuts in worker benefits.

These takeovers and cuts have absolutely nothing to do with providing better health care. They have everything to do with maximizing exploitation and profit for the owners.