Well Jude, you've hit on it with limited liability. Something very wrong could be done by the old folks homes so it is separately incorporated so that the Sisters are not responsible for the actions of the Old Folks Home. As you point out, it makes busis sense. A wrongful act could force the Sisters to take a big financial hit in order to make right what was done wrong. Instead they form a corporation so if the earthly goods of the corporation are exhausted be a wrong can be made right, the victim is simply only partially compensated rather than having a claim against the Sisters.
Separating the accounts does not lead the ''victim'' to only being partially compensated. For one thing, what works one way works the other, so if the person-at-fault is the Order, rather than the homes, than the residents in the hospice don't suffer because of the Order's faults. Making the innocent suffer with the guilty is not justice; it's responsibility with finances.
In the second place, compare Europe to America and you'd find that the accounting laws are much stricter here - and that America is moving slowly to the European system; in Europe, I'm pretty sure it would be illegal <I>not</I> to separate accounts, and America is moving in the same direction.
The sisters are simply following appropriate financial internal controls; don't lightly demonize it like they're trying to swindle potential litigants.
r The Order and the old folks homes are distinct entities and the Sisters deliberately set it up this way to remove responsibilty from themselves of the actions of the old folks home. There is a case for doing that
Here's that note of rhetoric again. By separating financial accounts, the sisters are establishing separate financial responsibilities, yes, but it's much more responsible to do that than to combine accounts. We finally find a religious order that does its accounting using 21st century methods, and people act like it's irresponsible.
Now, with that settled, we can proceed with a discussion for relief not of the Order but of the old folks homes associated them.
Wrong. The Order is still being wronged, because the Order owns the homes. If a person is an employer, the company is different from the person, but the employer still owns the company. The Order, like I was saying four posts ago, is saying that they are being discrimated against from entering the market as Catholic employers, since the current law unjustly causes catholics to be unable to run their apostulates as Catholics. Instead, the government is attempting to make the public sphere a ''secularists-only zone'' by fining persons who do not act like secular employers (hence, it does not matter if the Sisters cannot supply contraceptive coverage, because their religious beliefs are not secular, and are therefore not to brought into the public sphere).