The Boys from Lakewood
by James C. Sherlock
Most of them are quite young. ย They have a lot in common.
- They are friends in many cases. Some grew up together. More are related through blood or marriage. Many have worked together. Some are a second generation of their families in the nursing home industry;
- To address the elephant in the room, virtually all are ultra-Orthodox Hasidic (Haredi) Jews. Most are graduates of Touro University‘s New York or Skokie campuses or Lakewood, New Jerseyโs Haredi Beth Medrash Govoha (BMG). BMG, with 9,000 students is the second largest Yeshiva – rabbinical school – in the world. We note that Israel has its own issues with the Haredi. So has New Jersey and the federal government. For Jewish people everywhere, my Reformed Judaism grandsons and many of my best friends, I sincerely wish that were not the case. But it is. And it is necessary to air it.
- Many worked together for friends and family in the industry before starting their own companies. Most get nursing home administrator credentials working in a facility for a year or two before moving into chain management;
- After a few years of experience there, they start their own chains. The junior managers become CEOs and the young accountants CFOs, usually before the age of forty;
- The sources of their seed money are not banks or other traditional financial institutions but rather a relatively few number of trusts and LLCs. Private equity. Perhaps the money is not fully reported. Nothing else is.
Today we will discuss one Lakewood partnership that operates nursing homes in five states. It is the largest chain in Virginia. ย
- It displays a business model that consistently features extreme understaffing combined with far above average occupancy rates. ย
- Onsite-assessments by facility staff on average show their residents to be in truly exceptional need of care. That spikes insurance per diems and authorized lengths of stay.
- Low costs, high occupancy and high reimbursements have led to extraordinary profits.ย
- But their facilities have been documented repeatedly by state inspectors to produce resident humiliation, horrible suffering and premature death because of what happened to them in the nursing homes not because of the afflictions with which they arrived. ย
Here I will show rather than just tell readers what is wrong with government oversight at its core to demonstrate how they get away with it. It is a long storyย It needs to be told.

















