Shlomo Yehuda Rechnitz (born July 29, 1971) is an American businessman and philanthropist. He is the founder of TwinMed and owner of Brius Healthcare Services.
In 1998, Rechnitz incorporated TwinMed in Los Angeles with his twin brother, Steve Rechnitz. 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. In 2006, Rechnitz bought his first nursing home in Gardena, California. Rechnitz is also the owner of Brius Healthcare Services, the largest for-profit nursing home provider in California. Rechnitz runs over 80 facilities in California, Nevada, and Texas.
Brius Healthcare, primarily owned by Shlomo Rechnitz, has for years been questioned by state regulators, prosecutors, and plaintiffs’ attorneys about its business practices and quality of care. 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.
In 2014, 23 nursing homes owned by Rechnitz received a total of 50 serious deficiencies graded G or higher by the federal government, nearly triple the state average, according to a Sacramento Bee investigation. 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.”
In 2015, one of the Humboldt County nursing homes owned by Brius paid $42,000 for administrative services to Boardwalk Financial Services to which Rechnitz is a consultant; and slightly over $47,000 to SR Capital LLC where Rechnitz is a managing member. The same home paid nearly $900,000 to lease the facility from Rechnitz as well as paying over $110,000 to TwinMed Medical Supplies and Services owned by Steve and Shlomo Rechnitz. 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 the five Humboldt County 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. 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.
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. Related parties generally do not have to disclose profits, leaving regulators with little way to assess the financial gains of owners. Brius homes pay about 40 percent more per bed on average to related parties than other for-profit nursing homes in California. 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.
In 2020 and 2021, the federal government delivered about $54 million to Brius homes in coronavirus relief aid.