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Nursing homes collected million yet cut staff, wages

An investigation by Christina Jewett and Agustin Armendariz of California Watch shows that 232 nursing homes in California "either cut staff, paid lower wages or let caregiver levels slip below a state-mandated minimum" despite collecting about $236 million in additional funding intended to hire more caregivers and increase wages. "Many nursing homes appeared to use the cash infusion to help bolster their bottom lines, according to a California Watch analysis of state nursing home data. Among the 131 homes that cut staff by 2008, the median profit was 35 percent more than other homes in the analysis."

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