by James C. Sherlock
Virginia is awash with out-of-state nursing home and behavior-analysis chains operating as LLCs. Our state regulators know little to nothing about them and have no control over their presence in Virginia because they are not licensed by those regulators.
The problems we are experiencing in both industries are centered on rogue chains.
- Individual nursing homes are licensed, inspected, and regulated, but not their chains.
- In the booming applied-behavioral analysis business, behavioral-health companies are not regulated at all, just individual providers. Physical behavioral-health centers are not even inspected. Telehealth services in general are a problem that DMAS is trying to address with individual providers. But chains employ a lot of them.
After a dozen years of investigating major scandals in those industries, this author has concluded that Virginia must change course.
The ongoing scandals in both industries indicate they must be brought under tighter regulation. A standard LLC
- Can be owned by anyone;
- Files a registration with the State Corporation Commission (SCC) Clerk’s office to do business in the state; and
- Shields owners from the companyโs general business debts and liabilities.
Registration with the SCC provides little information about LLCs and none about their members.
We will examine how the state might proceed to establish regulatory control of chains organized as LLCs in problematic medical services industries.










