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David Hudnall

Trump pardoned operator whose firm led Kansas to seize 15 nursing homes | Opinion

A Google Earth image shows the former New Jersey headquarters for Skyline Healthcare above a pizza parlor.
A Google Earth image shows the former New Jersey headquarters for Skyline Healthcare above a pizza parlor. Google Earth

A recent ProPublica investigation tells the story of a nursing home operator who expanded fast, let conditions in his facilities deteriorate, pleaded guilty to stealing $39 million from his own employees, and failed to pay multiple families who’ve sued him, with court judgments worth millions still uncollected.

It’s a national story. But parts of it will sound familiar in Kansas.

The operator is Joseph Schwartz. The company was called Skyline Healthcare.

In late 2016, Skyline swept into Kansas and took over 15 nursing homes across the state, many in smaller communities like Wilson, El Dorado and Neodesha.

Within months, vendors weren’t getting paid, employees reported delayed or bounced paychecks, and some facilities struggled to get basic supplies.

By early 2018, the state went to court to take control of all 15 homes, warning that residents were at risk. A new operator, Mission Health, was brought in to stabilize the system.

The good news is that things mostly turned out OK in Kansas.

Mission Health still runs all 15 of those facilities today. And the Kansas Legislature has since tightened the licensing laws around nursing home ownership. Applicants now must submit a detailed 12-month operating budget and proof of sufficient working capital, disclose ownership interests in other facilities, and face a 10-year ban if their facilities land in receivership.

“These changes improved the financial vetting and background review process for prospective nursing home operators,” Cara Sloan-Ramos, a spokesperson for the Kansas Department for Aging and Disability Services, told me last week.

Unfortunately for the rule of law, things turned out mostly OK for Schwartz, too.

A Trump pardon

The ProPublica investigation shows that what happened in Kansas was part of a much larger pattern. As Skyline expanded into roughly 100 facilities across 11 states, problems and lawsuits trailed close behind.

In Arkansas, a woman whose chart specified she was not to be given food by mouth was later found dead; her family said doctors found scrambled eggs in her lungs. In another case, a resident developed severe bedsores that became infected after not being regularly turned. Families sued and won multimillion-dollar judgments tied to care and deaths. Many have yet to collect.

What finally brought Schwartz into a courtroom was not his poorly run nursing homes. It was something even more explicit: He was stealing from his employees.

Federal prosecutors said Schwartz withheld about $39 million in payroll taxes from his employees — money taken out of their checks — and never sent it to the IRS.

Where that money ultimately went remains unclear. Prosecutors said funds moved through more than 200 bank accounts tied to a web of companies. At sentencing, the judge noted that not a single asset was held in Schwartz’s name.

Schwartz pleaded guilty to tax fraud in 2024 and was sentenced to three years in federal prison.

He reported to prison, served about three months, and in November was granted a full pardon by President Donald Trump.

As the ProPublica investigation shows, Schwartz’s pardon followed a sustained lobbying effort. He spent more than $1 million on lobbyists pressing his case in Washington, while outside allies, including Laura Loomer, amplified arguments that he had been unfairly prosecuted. The White House’s explanation for the pardon echoed several of those claims, including some that conflict with court records.

Schwartz’s path to freedom illustrates a flourishing “pardon industry.” He joins a growing list of white-collar offenders including reality TV stars Todd and Julie Chrisley and predatory financier Jason Galanis who traded political loyalty and cash for clemency.

Kansas learned its lesson from the Skyline collapse, tightening laws to ensure accountability. It’s a shame the president doesn’t share those priorities.

David Hudnall
Opinion Contributor,
The Kansas City Star
David Hudnall is a columnist for The Star’s Opinion section. He is a Kansas City native and a graduate of the University of Missouri. He was previously the editor of The Pitch and Phoenix New Times.
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