Collection Actions: 9.6.7.1 Why Nursing Homes Sue Third Parties
Nursing homes file lawsuits against third parties for nursing home debts because collecting directly from residents is often futile. Many nursing home residents are income and asset poor, with income sources that are generally protected from collection (e.g., Social Security benefits, pension, VA benefits, etc.). Medicaid liens on real property also make it nearly impossible for nursing homes to enforce judgments against a nursing home resident’s home equity.