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Degemer / Rummadoù / Merker Partners 1
ADAPT (31)
[Headline] Heritage House Sued: Funds Violations Charged by Linda Cayton Attorneys for the Senior Citizens Law Center have filed suit in U.S. District Court charging the administrator and owners of Heritage House Nursing Care Center in Lakewood with illegally misappropriating and withholding personal needs money of patients, inadequate care, and intimidating and threatening residents who seek legal counsel. Officials of the Department of Health, Education and Welfare; Colorado Department of Social Services; and the Colorado Board of Health were also named as defendants for failure to enforce federal and state regulations governing nursing homes. The civil action represents a class action suit prompted by complaints received by the Legal Aid Society from the chief plaintiff, Patrick Smith, a 20 year old multiple sclerosis patient. Smith, a Medicaid patient, receives $25 per month from the Federal Supplemental Security Income (SSI) program to cover his personal needs. Early this year, Smith suffered a total respiratory breakdown and entered a local hospital. According to facts set forth in the lawsuit, while Smith was hospitalized, Thomas O'Halloran, administrator of Heritage House, instructed a bookkeeper to forge an “x” on Smith's SSI check. The check was endorsed, cashed, and credited to Smith's personal needs account. When Smith returned to the nursing home, O'Halloran informed him that his SSI check was unavailable. Later, Smith was informed that his check had been endorsed and cashed. Smith filed a complaint with the Legal Aid Society concerning the forgery. When attorneys informed O'Halloran of the complaint, he confronted Smith, calling him "despicable" and “ungrateful," and issued a week's eviction notice to him. Later, Smith's calls for nursing assistance went unanswered for some time and he was denied access to his medical files. In April, O’Halloran met with Assistant Colorado Attorney General Tony Accetta. According to Accetta's signed affidavit, O’Halloran admitted authorizing the forgery of Smith's signature in the belief that Smith would die before returning to Heritage House. O'Halloran also admitted circulating a memo stating that he did not “welcome harassment and threats from the legal profession” and explained that he threatened Smith with eviction because he did not want lawyers going through patients’ records. The suit charges O’Halloran and the owners of Heritage House with violating the Fifth and Fourteenth Amendments to the U.S. Constitution by depriving patients of the rights to manage their monies, to seek legal counsel, to adequate and proper medical and psychosocial treatment and care, to timely and adequate notice and opportunity for a hearing prior to a transfer from the facility and to access to their medical files. Casper Weinberger, Secretary of the Department of Health, Education and Welfare; Henry G. Foley, Executive Director of the Colorado Department of Social Services; and Edward Dreyfus, Director of the Colorado Department of Health were charged in the lawsuit with non-enforcement of the U.S. Constitution and those laws applicable to skilled nursing facilities. According to federal regulations, a nursing home patient should either manage his personal financial affairs or be given a quarterly accounting of financial transactions made on his behalf; be encouraged to exercise his rights as a patient and as a citizen with the right to voice grievances and remain free from reprisals; and be transferred or discharged only for medical reasons, or for his welfare, and be given advance notice of the transfer. State officials are charged with refusing to revoke or enforce Medicaid agreements or licenses of nursing homes that violate patients’ civil rights or provide inadequate care; inspecting nursing homes only once a year and giving prior notice of those inspections to the facility; and refusing to establish procedures for the management of patients’ personal needs money. Owners named in the civil action are Oscar Gross and H. Sol Cersonsky, general partners of Heritage House Associates; and Jack D. Feuer, a limited partner of Heritage House. Also named are limited partners M.J. Beitscher, Harry Berman, Bernard Ceronsky, Louis L. Fox, Howard D. Greyber, Martin Gross, Soloman Gross, Arnold Heller, Barry B. Melnick, Manuel Nash, and Johnny M. Weinreich.