Official Calls Nursing Home Eviction Illegal

A state health official said Monday that a bankrupt Reseda nursing home broke the law by suddenly evicting its patients late at night, and an angry federal judge appointed a trustee to take over three other financially troubled homes managed by the same Arizona company.

About 63 residents of the Reseda Care Center, some in wheelchairs, were ejected from the building and relatives were called to pick them up after 9 last Friday night. In one case, a family watching the eviction on late-night TV news realized that it was the same home where they had left a 106-year-old relative.

The trustee appointed by a federal bankruptcy court to handle the home’s affairs, Alfred Siegel, violated a California law that requires 30 days notice before closure of any health facility, Brenda Klutz, deputy director of licensing for the state Department of Health Services, said Monday.

“He obviously did not follow the law,” Klutz said.

The eviction was unnecessary in any case, because the state has an emergency fund that could have been tapped to keep the facility open for at least a few days while other options were explored, she said.

Sheri Bluebond, an attorney representing Siegel, said neither she nor her client had been notified by Klutz’s office that emergency funding was available.

Meanwhile, U.S. Bankruptcy Judge Arthur M. Greenwald, who has been hearing the convalescent home’s bankruptcy case, castigated attorneys and the court-appointed trustee in his Woodland Hills courtroom, saying he was shocked and very upset over the eviction.

“I want to make it absolutely clear that this court doesn’t condone that conduct,” Greenwald said. “To move those patients out on short notice was never the intention of this court. The patients’ health and welfare was always paramount.”

He should have been advised of the impending closure, no matter how short the notice, he said.

Bluebond, defending Siegel’s decision to the judge, said that after he was appointed trustee of Reseda Care on Sept. 24, he was besieged by nonstop phone complaints over unpaid bills by utility companies, the landlord, housekeeping services and food services. The nursing home lacked insurance and was $4,000 short on its last payroll and had another payroll due Sept. 25, she said.

“There was no money for services,” Siegel told the judge. “These people needed to be somewhere safe. They hardly had enough food to last them through the weekend. I was not going to put 63 lives in jeopardy.”

The judge appointed another trustee to immediately take over the business operations of three other nursing homes managed by the Arizona firm--homes that are still functioning in Long Beach and Alta Loma and a home in Kern County that is already closed.

All three, and the Reseda home, are managed by Phoenix Health Group of Scottsdale, Ariz., owned by Jon Robertson of Arizona, an attorney for Robertson said.

A high-ranking executive of Healthcare Capital Resources--which loaned money to the Phoenix group--alleged in court papers that Robertson paid himself $900,000 in salary in 1996 and had entered a rehabilitation center for a drug problem.

William F. Reed Jr.--identified as chief operating and financial officer of HealthCare Capital--made the statements in a declaration in support of appointing a trustee for Reseda Care Center.

“It is my understanding that the substance being abused is cocaine because there have been repeated statements from the [nursing homes’] representatives that Mr. Robertson looted the [homes] and ‘put it up his nose,’ ” Reed stated in the declaration, which was filed in U.S. Bankruptcy Court on Sept. 9.

Robertson’s attorney, Marc Beilinson, replied in an interview that Reed had no information to back up his charges and that Robertson’s health was irrelevant because “he has not been involved in the day-to-day operations of the company in the last six months.”

Of particular concern to the federal bankruptcy judge is the state of the Alta Loma nursing home, which attorneys contend will be closed shortly unless a $50,000 commitment can be secured from a lender to keep it open for two more weeks while the present owners look for a buyer.

Greenwald ordered the trustee to report to him Wednesday morning on its financial situation, on the care being provided to its residents and on whether provisions have been made to continue caring for them if the nursing home is shut down.

“These people are not going to be moved out in the wee hours of the morning or at night,” Greenwald said. “We’re not going to go through a Reseda again.”

Some relatives of patients at the Reseda home said they did not hear of the eviction until late at night. Others said they were not notified at all and saw television news reports of patients being removed.

Bennie Cortese of Playa del Rey was furious as his 88-year-old mother, who has Alzheimer’s disease, was wheeled out on a gurney to a waiting ambulance about 1:30 a.m.

“In business, OK, they’ll have a bankruptcy,” Cortese said. “But this is not a clothing store where you can take goods out and sell them. These are human beings.”

Times staff writer Barry Stavro and correspondent Claire Vitucci contributed to this story.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Screening a Nursing Home

Tips for assessing the financial health, safety and desirability of a nursing home.

FINANCIAL STABILITY

* Question the facility administrator and director of nursing about the financial future of the facility and stability of past ownership.

* Ask for a cost report from the office of Statewide Health Planning and Development. Though often confusing, they can provide some financial data.

* Look for signs of cost-cutting such as minimal staffing, rundown equipment, poor sanitary conditions, deficiencies or any citations from the state.

PATIENT CARE--LOOK FOR:

* A current operating license from the state.

* An administrator with a current state license.

* Certification under Medi-Cal and Medicare, if the patient depends on these programs.

* A location near family members.

* Well-balanced menus and flexibility in menu planning. Ask to sample a meal.

* Hand rails in hallways, grab bars in bathrooms and other features aimed at accident prevention.

* Clearly marked exits and unobstructed paths to these exits.

* Bedrooms that open onto a corridor and have windows.

* A physician available in emergencies.

* No strong odors.

* Residents who look clean and are dressed appropriately for activities.

* Ability of residents to go out for fresh air.

* Minimal or no use of physical restraints.

* Activity room for crafts, reading and social activities. Review activities calendar.

* A friendly staff and volunteer program; swift response to call lights.

* An active residents’ council and posted bill of rights.

* Information about facility from in-house or state ombudsmen, family and friends of current residents.

* A copy of the most recent inspection reports. (Should be available at the facility, but all records may be viewed at the local office of the state Department of Health Services licensing and certification division.)

HELPFUL PHONE NUMBERS

* State long-term care ombudsman (916) 323-6681; Los Angeles County district office, state Department of Health Services: (213) 351-8200.

Source: American Assn. of Homes and Services for the Aging; state Department of Health Services; California Advocates for Nursing Home Reform