Inside a $110 Million Verdict: Private Equity, Assisted Living, and the Hidden Risks of Rehab

Sacramento attorney Ed Dudensing joins Harry to discuss nursing home and assisted living litigation, including his $110 million verdict against corporate owners Colony Capital and Formation Capital after a cognitively impaired 100-year-old resident with dementia wandered out an unalarmed second-floor door, was locked outside, fell, and died of exposure on a 38–39° February night. Dudensing describes how assisted living is less regulated yet increasingly houses higher-acuity residents, and how layered holding-company structures can leave licensees assetless while top entities control budgets. He explains why private equity and REITs invest despite claims that Medicaid rates are inadequate, citing higher Medicare reimbursement and profit strategies including high-acuity “short-stay rehab” marketing and related-party transactions that shift costs. He supports staffing minimums, notes studies linking private equity ownership to worse outcomes, urges hospital accountability for discharge placements and ownership transparency, and advises families to visit unannounced and trust their instincts.   Topics 00:24 Meet Ed Dudensing 01:11 Why He Sued Facilities 02:23 110 Million Verdict 03:32 How Neglect Happened 04:56 Following the Money 08:11 Private Equity Playbook 10:27 Medicaid Myth Explained 16:07 Staffing and Outcomes 18:09 Nonprofit vs For Profit 19:48 What States Can Do 22:15 Rehab Marketing Trap 24:12 Policy Fixes 25:48 Advice for Families 27:00 Closing Thoughts