By William J. Beerman, Sr.
Recent court actions determined that two major lawsuits by state attorneys general (AGs) against nursing home chains will continue.
In one case, the Pennsylvania Supreme Court on September 24, 2018 reinstated a suit that the state’s Commonwealth Court had dismissed. In the second case, a court-administered status conference September 27, 2018 in New Mexico determined that an AG suit against a nursing home chain will remain alive — but stayed (suspended) — pending legal determinations in separate bankruptcy court proceedings. A spokesman for the New Mexico AG Office in Santa Fe said the office expects that another status hearing on the stayed case will be held in about 6 months.
The Pennsylvania case involves the Golden Living/Golden Gate senior care chain, and the New Mexico case is about the Preferred Care chain. Both cases are covered extensively in my book, Mary Regina’s Nursing Home, and the Pennsylvania Supreme Court’s September 24 opinion is posted on my website, https://wbeerman.com under the index listing “Litigation-Related Documents.” Also posted there is the earlier Commonwealth Court decision, a dissenting judge’s minority opinion, and the AG’s complaint in the Preferred Care case.
Both the New Mexico and Pennsylvania cases essentially alleged that the nursing homes had not provided all the care for which they billed. My book includes the arguments presented by the nursing home chains as well.
A statement by Preferred Care, Inc., of Plano, Texas, said it filed Chapter 11 bankruptcy proceedings in November 2017 to allow it to remain in business as it defended against 163 personal injury cases. A lawyer for Golden Living did not respond to my request for comment on the Pennsylvania Supreme Court decision.
When the Pennsylvania Commonwealth Court dismissed the Golden Living case, concerns were raised that attorney general lawsuits might no longer be a viable tool to enforce standards of care in nursing homes. The various reasons why are contained in the Commonwealth Court opinion and in a dissenting minority opinion by one of the Commonwealth Court judges.
“The Supreme Court’s decision allowing our lawsuit against this nursing home chain to continue is a significant victory for Pennsylvania seniors and their families,” said Attorney General Josh Shapiro.
Under the Supreme Court ruling, the state can recover public funds charged for services not provided – “a win for taxpayers,” Shapiro said.
“This ruling allows my team to hold businesses accountable for deceptive, misleading practices under our Commonwealth’s consumer protection law,” Shapiro said.
Mary Regina’s Nursing Home reports on state AG lawsuits and AG research that encompass 65 nursing homes and more than 1 million patient-days of nursing home care. The investigations for the AG lawsuits elicited reports on nursing home operations from former employees such as certified nurse’s assistants (CNAs) who became confidential witnesses for the AGs. Their insider view of nursing home operations is reported in the book. The investigations looked not only at how residents were treated, but at how the nursing homes interacted with oversight agencies and with their parent corporations.