OBRA recognized as creating a private right of action

In a landmark opinion that recognizes a new cause of action for nursing home residents, the 3rd U.S. Circuit Court of Appeals has ruled that the Federal Nursing Home Reform Amendments give residents of county-run nursing homes the right to bring claims to challenge the quality of their treatment.   This is a huge victory for consumers of nursing homes.  Hopefully, other Courts will follow the sound reasoning and adopt the holding.

"The language used throughout the FNHRA is explicitly and unambiguously rights-creating," U.S. Circuit Judge Richard L. Nygaard wrote in his 23-page opinion in Grammar v. John J. Kane Regional Centers.   "These provisions make clear that nursing homes must provide a basic level of service and care for residents and Medicaid patients," Nygaard wrote.

"The FNHRA are replete with rights-creating language. The amendments confer upon residents of such facilities the right to choose their personal attending physicians, to be fully informed about and to participate in care and treatment, to be free from physical or mental abuse, to voice grievances and to enjoy privacy and confidentiality," Nygaard wrote.

Under the law, Nygaard said, nursing homes "are required to care for residents in a manner promoting quality of life, provide services and activities to maintain the highest practicable physical, mental and psychosocial well-being of residents, and conduct comprehensive assessments of their functional abilities."

Nygaard also found that the statute "specifically guarantees nursing home residents the right to be free from physical or mental abuse, corporal punishment, involuntary seclusion, and any physical or chemical restraints imposed for the purposes of discipline or convenience and not required to treat their medical symptoms."

Congress also chose key phrases that Nygaard found to be clear indications that private lawsuits should be allowed. "The repeated use of the phrases 'must provide,' 'must maintain' and 'must conduct' are not unduly vague or amorphous such that the judiciary cannot enforce the statutory provisions," Nygaard wrote.

As further evidence that Congress intended to create a private right of action, Nygaard noted that the FNHRA "use the word 'residents' throughout," and their provisions "are constructed in such a way as to stress that these 'residents' have explicitly identified rights, such as 'the right to be free from physical or mental abuse, corporal punishment, involuntary seclusion, and any physical or chemical restraints imposed for the purposes of discipline or convenience and not required to treat the resident's medical symptoms.'"

In the case of the FNHRA, Nygaard said: "[O]ur independent examination and assessment of the Medicaid Act disclosed no evidence of congressional intent to preclude enforcement of the rights created by the various provisions of this statute. This is so because no provision contains express terms to that effect and no comprehensive remedial scheme is established by the provisions at issue."

 

Fraud and eviction led to death

The Daily Journal of New Jersey had an article about a lawsuit filed against a facility that intentionally misled a resident by promising she could remain in the facility after she depleted her substantial personal savings, and then threatening her with eviction when she did. 

The family of the late May Elizabeth Hunish contends in the complaint that the threat of eviction from Maurice House was a factor in her death soon after she received the notice in June 2007. The  lawsuit echos the findings of an 18-month investigation by the state Office of the Public Advocate. The results prove that Assisted Living Concepts Inc. involuntarily discharged or threatened with discharge from the company's facilities several elderly residents like Hunish when they drained their personal savings and became eligible for Medicaid.

Wisconsin-based Assisted Living Concepts operates Maurice House and seven other assisted living facilities in New Jersey.

Ronald Chen, state public advocate, said that administrators at the facilities "failed to inform and misled some residents" about their policy for accepting Medicaid.   Chen said the problem was caused by a change in corporate policy at the company in 2006, in which it sought to increase profits by reducing its number of Medicaid residents.

The lawsuit was filed in state Superior Court on behalf of Todd and Warren Buirch, the executors of Hunish's estate.  Todd Buirch is Hunish's grandson and Warren Buirch is her son.  The lawsuit  accuses Assisted Living Concepts of consumer fraud, breach of contract and negligence. The lawsuit contends that officials at Maurice House made verbal promises to Hunish's family that she could remain in the facility once she depleted her personal savings and became eligible for Medicaid. But after Hunish did become eligible for Medicaid in March 2007 by spending her savings of $150,000, the facility informed her family that she'd have to move into an apartment at Maurice House with another resident or leave the facility.  Two months later, Hunish slipped and fell while she was unattended in her bathroom at Maurice House, shattering her femur. While she was hospitalized, her family told her about a discharge notice issued by Maurice House to her on June 12.

"She grew increasingly distraught and her will to live decreased," the lawsuit contends. "She constantly cried and expressed that life was no longer worth living."

Hunish died on June 16, 2007. She was 84.

Todd Buirch said in an interview Monday his family filed the lawsuit "to prevent any other parents or grandparents from having to go through this with Assisted Living Concepts. It's not about money; it's about stopping this. We want to change the way they do business. We don't want to see any more people being evicted."

 

 

 

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