Shlomo Rechnitz

Last updated

Shlomo Rechnitz
Born
Los Angeles, California
NationalityAmerican
Occupation(s)Owner of TwinMed LLC and Brius Healthcare Services

Shlomo Yehuda Rechnitz is an American businessman and philanthropist. He is the founder of TwinMed and owner of Brius Healthcare Services.

Contents

Early life and education

Shlomo Rechnitz attended high school at the Mesivta of Long Beach, New York and then went to the Mir Yeshiva in Israel. [1]

Career

In 1998, Rechnitz incorporated TwinMed in Los Angeles with his twin brother, Steve Rechnitz. [2] Based in Santa Fe Springs, California. TwinMed distributes medical supplies to nursing homes and hospitals in the United States from warehouses in California, Texas, Illinois, Ohio, Florida and New Jersey. [3] In 2006, Rechnitz bought his first nursing home in Gardena, California. [4] Rechnitz is also the owner of Brius Healthcare Services, [5] the largest for-profit nursing home provider in California. [4] Rechnitz runs over 80 facilities in California, Nevada, [6] and Texas. [7] [8]

Controversies

Brius Healthcare

Brius Healthcare has for years been questioned by state regulators, prosecutors, and plaintiffs’ attorneys about its business practices and quality of care. [9] Staffing levels and health and safety ratings at dozens of the homes in recent years have fallen below the state average, federal data shows, with many lawsuits alleging poor patient care. Brius facilities have been investigated repeatedly for patient suicides and unsafe working environments. [10] In 2014, 23 nursing homes owned by Rechnitz received a total of 50 serious deficiencies graded G or higher by the federal government, [11] nearly triple the state average, according to a Sacramento Bee investigation. [8] In October 2015 the FBI raided one of his facilities, the Alta Vista Healthcare & Wellness Centre, in Riverside, California, "seeking evidence in relation to alleged criminal activity." [8] By 2016, state regulators denied operating licenses for five facilities the Brius network had acquired. In a letter to Rechnitz, regulators cited more than 370 higher-level state and federal health and safety violations at Brius homes from 2013 to 2016. [12]

Rechnitz has come under fire for using the billions of dollars received in Medicaid and Medicare payments to overpay related companies – companies they or their family members partially or wholly own – for goods, service, and rent instead of relying upon outside vendors. [10] Brius homes pay about 40 percent more per bed on average to related parties than other for-profit nursing homes in California. According to the 2014–2015 state filings, over $4.6 million was paid to companies associated with Rechnitz, including more than $3.5 million in lease payments on five properties. This all occurred at the same time as the company was trying to close the nursing homes claiming a loss of nearly $1.5 million. [13] In 2018, the most recent year data is available for comparison, Brius homes paid more than $100 million to dozens of related parties for everything from medical supplies to rent. [14] [15] A California state auditor who reviewed Brius said most related-party transactions were properly disclosed and the expenses did not increase costs for Medi-Cal. [10]

Statements on Jewish life

Philanthropy and community work

Rechnitz oversees the Shlomo & Tamar Rechnitz Charitable Foundation which distributes funds to over 1,100 institutions yearly. He is known in the Los Angeles area for opening his home every Saturday night to listen to the needy and hand out charity. [19] Rechnitz donated $5 million to support the Mir Yeshiva. [20] [21]

Rechnitz has composed, recorded and released four albums, which go by the names Shir, Shir 2, Shir 3, and Matana Tova, featuring a variety of notable Jewish singers. The singers appeared pro bono and proceeds from album sales supported charities, including Keren Hashviis' mission to assist shmita -observant farmers. [22]

In December 2011, Rechnitz purchased a creditor's note against Chabad of California's headquarters in Westwood for $2.35 million in order to help the organization avoid foreclosure. [20] After Hurricane Sandy, Rechnitz said he gave $1 million to aid in the rebuilding of Orthodox Jewish day schools and to assist the families whose children attend those schools. [20]

In 2012 Rechnitz heard about Diane Aulger, a mother-of-five in North Texas that had her labor induced a few weeks early so that her husband could meet their daughter before he died from pulmonary fibrosis. Upon hearing the story, Rechnitz personally phoned Augler himself and sent her $20,000. [20] [23] In the autumn of 2014 Shlomo pledged $2.5 million to the Lakewood Cheder School's building campaign. [24]

In June 2015, Rechnitz donated $250,000 to restore the Mount Zion Cemetery in East Los Angeles. [25]

In November 2015, while on a layover in Shannon Airport in Dublin, Ireland, Rechnitz purchased hot meals for 400 US troops when he saw they were sitting on the floor eating lunches out of paper bags while other passengers dined at airport restaurants. He expressed his appreciation for their service and gave them each $50 ($20,000 total), telling them he'd take it off his taxes. [26]

In January 2016 it was reported that Rechnitz had purchased 18,000 Powerball tickets for his employees, and that one of his employees had received a winning ticket. [27] While he did indeed buy and distribute 18,000 tickets, the employee had been tricked by her son into thinking she had won. Rechnitz then offered the family a paid vacation. [28] [29]

Honors and awards

Shlomo Rechnitz is the President of Torath Emeth and he is the first chairman of the board for the Chofetz Chaim Heritage Foundation. [30] On August 1, 2012, Rechnitz was the master of ceremonies of the 12th Siyum HaShas event at the MetLife Stadium in New Jersey. The event attracted more than 90,000 people and celebrated the conclusion of the 7+1⁄2-year learning cycle of the Babylonian Talmud. [31]

Personal life

Shlomo Rechnitz is married to Tamar Rechnitz (née Belsky, daughter of Rabbi Yisroel Belsky). [32]

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References

  1. ↑ Media, JNi (January 26, 2016). "Rechnitz: I help Lakewood Institutions I Know Would Never Accept my Own Children". Jewish Press. Archived from the original on March 30, 2016. Retrieved March 8, 2016.
  2. ↑ "TwinMed, LLC: Private Company Information – Businessweek". Bloomberg BusinessWeek. Archived from the original on December 8, 2015. Retrieved November 28, 2015.
  3. ↑ "TwinMed, LLC: Private Company Information". December 22, 2011. Archived from the original on February 21, 2014. Retrieved January 29, 2014.
  4. 1 2 Lundstrom, Marjie; Reese, Phillip (June 13, 2015). "California's largest nursing home owner under fire from government regulators". The Sacramento Bee. Archived from the original on November 17, 2015. Retrieved November 13, 2015. He started out in 1998 selling latex gloves and adult diapers alongside his twin brother, Steve, but branched out on his own to buy his first nursing home in Gardena in 2006.
  5. ↑ "Shlomo Rechnitz". Brius Health. Archived from the original on February 2, 2017. Retrieved January 24, 2017.
  6. ↑ "Premier Health & Rehabilitation Center Of LV". Senior Care. Archived from the original on May 10, 2021. Retrieved May 10, 2021.
  7. ↑ "The Rehabilitation & Wellness Centre Of Dallas". Senior Care. Archived from the original on May 10, 2021. Retrieved May 10, 2021.
  8. 1 2 3 Lundstrum, Marjie. "FBI raids Riverside nursing home". Sacramento Bee. Archived from the original on November 27, 2015. Retrieved January 15, 2016.
  9. ↑ Lundstrom, Marjie (June 15, 2015). "California's largest nursing home owner under fire from government regulators". Sacramento Bee. Archived from the original on May 18, 2021. Retrieved February 23, 2021.
  10. 1 2 3 Cenziper, Debbie (December 31, 2020). "Profit and pain: How California's largest nursing home chain amassed millions as scrutiny mounted". Washington Post. Archived from the original on February 4, 2021. Retrieved February 23, 2021.
  11. ↑ Lundstrom, Marjie (June 13, 2015). "Nine stories from Rechnitz's California nursing homes". Sacramento Bee. Archived from the original on September 23, 2016. Retrieved December 29, 2016.
  12. ↑ "Shlomo Rechnitz vs. California: Key documents". Fresno Bee. Archived from the original on May 18, 2021. Retrieved February 23, 2021.
  13. ↑ Stansberry, Linda (October 13, 2016). "The Case of the Missing $5 Million Who is profiting off the skilled nursing monopoly, and why it feels 'like we're being extorted'". The North Coast Journal. Archived from the original on December 30, 2016. Retrieved December 29, 2016.
  14. ↑ Gorman, Anna. "Weak Oversight Blamed For Poor Care At California Nursing Homes Going Unchecked". Washington Post. ISSN   0190-8286. Archived from the original on January 7, 2021. Retrieved February 23, 2021.
  15. ↑ Laise, Eleanor. "Covid-Hit Nursing Homes Load Up on Debt". www.barrons.com. Archived from the original on February 27, 2021. Retrieved February 23, 2021.
  16. ↑ ChaimShamayim (August 11, 2014). "Mishpacha Magazine: There is no Shidduch Crisis!". The Yeshiva World. Archived from the original on June 13, 2021. Retrieved February 23, 2021.
  17. ↑ "Top donor blasts yeshivot's 'sickness' in tirade at U.S. ultra-Orthodox heartland". Haaretz. Archived from the original on February 25, 2021. Retrieved February 23, 2021.
  18. ↑ "'Liberal Orthodox are fake Jews, a threat to all of Israel'". The Jerusalem Post | JPost.com. October 17, 2017. Archived from the original on November 12, 2020. Retrieved February 23, 2021.
  19. ↑ Suissa, David (December 22, 2011). "On the Money". The Jewish Journal. Archived from the original on May 17, 2016. Retrieved December 29, 2016.
  20. 1 2 3 4 Lowenfeld, Jonah (April 24, 2013). "Doheny Meats Buyer Shlomo Rechnitz on Business Philanthropy". The Jewish Journal. Archived from the original on May 1, 2016. Retrieved December 29, 2016.
  21. ↑ "Donor Pulls Through for Chabad". December 4, 2011. Archived from the original on February 1, 2014. Retrieved January 29, 2014.
  22. ↑ "Shlomo Yehuda Rechnitz Releases Album To Raise Funds For Keren Hashviis "SHIR" | Jewish Insights". www.thejewishinsights.com. Archived from the original on December 8, 2015. Retrieved November 28, 2015.
  23. ↑ "Shlomo Rechnitz Donates to Devastated Family in North Texas". Working to Give. February 2, 2013. Archived from the original on February 1, 2014. Retrieved January 29, 2014.
  24. ↑ "Reb Shlomo Yehuda Rechnitz Dedicates The New Vassar Avenue Building of the Lakewood Cheder". September 4, 2014. Archived from the original on December 26, 2014. Retrieved December 26, 2014.
  25. ↑ "Local Entrepreneur Donates $250K To Repair Abandoned East LA Jewish Cemetery". CBSlocal.com. June 5, 2013. Archived from the original on November 17, 2015. Retrieved August 10, 2015.
  26. ↑ "Man Shows Gratitude for 400 U.S. Troops at Airport by Buying Them All Dinner". FOX 29 Philadelphia. December 6, 2015. Archived from the original on April 5, 2023. Retrieved April 5, 2023.
  27. ↑ YouTube (January 16, 2016). "Meet Shlomo Rechnitz, the 'Mitzvah Mogul' Blindsided by Powerball Hoax". The Forward. Archived from the original on November 16, 2021. Retrieved February 23, 2021.
  28. ↑ Earth/Wikimedia, Google (January 15, 2016). "Powerball Hoax Ruins Jewish Nursing Home Owner's Lottery Mitzvah". The Forward. Archived from the original on March 2, 2021. Retrieved February 23, 2021.{{cite web}}: |first= has generic name (help)
  29. ↑ "Pomona nurse pranked by son, was not Chino Hills Powerball jackpot winner". ABC7 Los Angeles. Archived from the original on January 19, 2016. Retrieved January 24, 2016.
  30. ↑ "Shlomo Yehudah Rechnitz Named Chairman of the Board of CCHF". The Online Voice of Torah Jewry. Archived from the original on February 2, 2014. Retrieved January 29, 2014.
  31. ↑ "Tens of Thousands Celebrate Historic Siyum HaShas". The Jewish Press. August 8, 2012. Archived from the original on February 1, 2014. Retrieved January 29, 2014.
  32. ↑ Blum, Shimmy (April 9, 2013). "You Can't Build Up If You're Looking Down". Mishpacha Jewish Family Weekly. Archived from the original on October 13, 2017. Retrieved November 13, 2015.
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