September 2010 Archives

September 29, 2010

California Nursing Home Fined by State For Failure to Maintain Equipment

The California Department of Public Health issued a Class AA citation and a $100,000 fine against Eskaton Care Center Manzanita in Carmichael, California. This is the highest fine the state can issue for a nursing home's failure to comply with the law. AA citations are issued when a resident death has occurred in such a way that it has been directly and officially attributed to the responsibility of the facility.

In this case, a 60 year old patient confined to a wheel chair needed help getting into and out of bed. Special lifts are designed to transfer residents who need this much help. When it was used to transfer the patient at Eskaton, it broke and the woman fell out of the lift, hit her head, and suffered a fatal head injury. The state found the facility failed to follow basic safety rules in maintaining equipment in its nursing home. According to maintenance records, the lift used at Eskaton was supposed to be inspected monthly to ensure it was working properly, but in this case it had not been checked in five years.

A spokesperson for the facility called this event a "tragedy". The lift broke when used as intended. But the accountability for the operation of the lift rests with the facility for failing to follow basic safety rules requiring regular inspection of the lift to ensure it was fit for use. The condition of the lift, as noted by the State, was such that it "posed an imminent danger of death or serious harm to patients." Had the nursing home operators been performing their regular monthly checks, such a tragedy could have been avoided.

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September 10, 2010

California Nursing Home's Lack of Insurance Does Not Deter Suit

I have blogged more than once on the issue of liability insurance for nursing home neglect. There is no requirement that nursing homes carry liability insurance, even if they receive state and federal funding. Some nursing homes chose not to carry insurance, hoping that the lack of insurance will keep them from being sued.

In San Bernardino, a family of a man who committed suicide in a nursing home that was supposed to follow strict suicide prevention measures, is learning the lessons of the uninsured first hand. According to a lawsuit filed by the family of Lance MacPherson , the operators of Del Villa Rose are the de facto owners and operators of four other nursing homes, but each nursing home is separately licensed and "owned" by a different family member. By setting up this complex network of nursing home ownership, this family is deliberately trying to shirk its responsibilities to provide adequate care or be held accountable. In the wake of a catastrophic outcome, such as Mr. MacPherson's suicide, the individual owner can simply claim bankruptcy and hope to walk away unscathed.

But MacPherson's lawyers have another plan. They have filed the claim against not only the individual family member and company which operates Del Villa Rosa, but the family members who "own" the other 4 homes as well. Hopefully, by exposing this dishonorable practice of setting up shell corporations, Mr. MacPherson's family will get the justice they deserve.

My tip for the day: when considering a nursing home or assisted living facility, you should always ask whether they carry liability insurance. This doesn't mean you are litigious or expecting a bad outcome. Instead, you should make the inquiry because responsible business owners carry insurance. If the business owner has made a conscious choice not to carry liability insurance, you should question whether they are being responsible in other aspects of their business.

September 8, 2010

Largest California Nursing Home Verdict Likely to Settle for $50,000,000

Although the jury awarded $677,000,000 in damages to residents residing in 22 nursing homes owned and operated by Skilled Healthcare Group, the Humboldt County District Attorney's Office announced that a settlement agreement is pending before Hon. Judge Watson for September 10, 2010. The comprehensive agreement includes an injunction against the defendants, which requires them to meet the mandatory minimum staffing levels. An independent auditor will be appointment to monitor for compliance. Also, the settlement agreement provides for restitution to the nursing home residents, who did not get the care they needed. Finally, prosecutors will be remunerated for their role in prosecuting this case, according to a press release from the District Attorney's Office.

Skilled Health Care issued its own release stating the company will deposit $50,000,000 into escrow accounts to pay settlement payments to victims, claims administration costs, and plaintiff's attorneys fees and costs. The settlement is subject to the judge's approval.

As an advocate for victims of elder abuse and neglect, the settlement is likely the best possible outcome for the residents and their families. In a case like this, collecting on a judgment of this magnitude would have forced the company, which has a twelve-month revenue of over $700 million and over 14,000 employees, into bankruptcy and made this very long road to justice even longer. A settlement assures compensation for all involved, including the attorneys who devoted four years at great personal and economic sacrifice to ensure this case made it into the hands of a jury. This case shines a spotlight on the critical issue of understaffing, not just on Skilled HealthCare, but on all elder care homes. There is no greater predictor of patient/resident outcome and safety than the proper quantity and quality of direct caregivers working at bedside in any facility.

On a hopeful note, the jury's verdict and settlement sends the message to the industry, that they better meet the mandatory minimums or face severe penalties. Importantly, the public and all concerned persons need to understand that the mandatory number of caregivers required by our state is a 'floor' and not a 'ceiling' - 3.2 nursing hours per day is the barest number of hours that a facility can legally provide. So, in the 22 nursing homes that skimped on staffing in favor of a fatter bottom line, residents were subject to less than what is already considered too low by widely recognized nursing experts making this behavior all the more egregious. As a result of the efforts of so many, the quality of care should improve industry wide. We owe a debt of thanks to the attorneys and clients who were willing to go the distance and achieve this remarkable result.

September 4, 2010

Nursing Home Operator Who Siphoned Money for Patient Care Ordered to Pay; But Will He?

As Abraham Lincoln once said, "A man who represents himself has a fool for a client".

George D. Houser, operator of 3 Georgia Nursing Homes, has been ordered to pay 43.5 Million in wrongful death damages to the family of 80 year old Morris Ellison. Mr. Ellison was neglected, suffered a malnutrition, dehydration, a broken hip, and died on April 17, 2007.

Broken hips and malnutrition/dehydration are common scenarios in nursing homes, and often the subject of "elder neglect" and wrongful death lawsuits, yet rarely do such lawsuits result in a verdict this large. What makes this case stand out is the fact that the Mr. Houser (and his ex-wife) were siphoning money that was supposed to be used for patient care and using it to buy homes and luxury cars, according to a federal indictment for Medicare and Medicaid fraud.

The nursing home director testified at the three-day trial, in which Mr. Houser (an attorney) made the not-so-wise choice to represent himself, that the home did not have enough money to pay staff, to do laundry, and pay its bills. At the time of the verdict, he was immediately taken into custody on a contempt charge, which says something about the efficacy of his advocacy.

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