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Question

Is this illegal?

SO I am not directly involved in this issue however, it gives me an ick and I feel like someone needs to be made aware of what's going on.

I work for a small hospice company as an RN case manager. I have been in hospice for 2 years and I was working at a big corporation on the west coast in Southern California. I loved that job, however, my case load was really tough and the travel was hard on me and the on call requirements were too much. So I left for a smaller company that was two years old, and really had a positive and inspiring message. I really liked work here until things started getting weird. First, we have 5 nurses, 3 nurses quit- one we knew about, one unexpected and another unexpected. We had an NP get fired and a marketer get fired. So basically 75% of the company turned over.

Now here's where things get weird. The executive director also quit citing family issues. But then he came back, and then quit again. So our ED is also really good buddies with this guy who runs a homecare agency lets cal him Tim. Tim provides home care but also provides placement with facilities. Tim provided us with an inservice where he bought us all lunch. Okay.. that's cool. But Tim kept saying, a lot of our clients can't afford our services so we provide council on how to afford us. One of the things people can do is sell their home. Well our executive director is married to a realtor who does a lot of short sales. Specifically, she will target people who are looking to afford home care, and then sell their homes really quickly without listing them on the MLS, and for a much cheaper price than the fair market value. As you guessed, a lot of these clients are in black and brown communities.

This scheme feels predatory. Am I wrong to be icked.

Featured Replies

Ethically sketchy:

If the executive director's spouse is a realtor and is targeting your clients, that can create a conflict of interest and possible self-dealing concern. Real estate ethics guidance emphasizes transparency, disclosure, and avoiding pressure or misleading conduct, especially when dealing with vulnerable people.

It may cross the line if there is:

  • Misleading pressure about needing to sell to get care.

  • Failure to disclose the relationship between your organization and the realtor.

  • Taking advantage of clients' medical, financial, or emotional vulnerability.

  • Fraud, undue influence, or deceptive inducement in the sale process.

  • Admin

That ick you're feeling is your license talking. It sounds like a textbook conflict of interest and potentially a kickback scheme.

Hospice is highly regulated. When a company funnels vulnerable families to a specific realtor who happens to be the ED's spouse, it crosses a massive ethical line. Selling homes under market value without listing them on the MLS is a huge red flag for equity stripping. This isn't just weird. It's predatory.

Potential Regulatory Issues

  • Anti-Kickback Statute violations if referrals are being traded for financial gain.
  • Breach of fiduciary duty to the patients.
  • Unethical business practices regarding the Fair Housing Act or elder abuse laws.

The high turnover makes sense now. People usually jump ship when they see the writing on the wall. If you want to see if this company has a history of citations, check the data through your State Nursing Boards or the Department of Public Health.

Protect yourself. Document what you have seen and heard without taking any patient records home. If they are willing to exploit patients' homes, they won't hesitate to throw a nurse under the bus if a state surveyor walks in the door.

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