Archive for the ‘Healthcare Law’ Category

Arguments are soon to be heard regarding a preliminary injunction in a case that may have profound effects on how nursing home care is delivered to the poor in Humboldt County and across the state.

To help deal with California’s budget crisis, this year’s California budget included a 10% reduction in Medi-Cal reimbursement rates for freestanding skilled nursing facilities and other healthcare providers (AB 97).  This 10% cut is scheduled to go into effect retroactively to June 1, 2011.  That cut was recently approved by the Obama administration.  The State has agreed that, on December 31, 2012, it will reimburse medical providers for the 10% that is held back, provided it has the money.

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News Release – For Immediate Release

June 21, 2011

Contact: Deborah Mathis, Communications Director – (202) 797-8600 or dmathis@publicjustice.net

Six California Lawyers Who Won Historic Verdict for Nursing Home Residents Are Finalists for Trial Lawyer of the Year Award

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The U.S. Department of Health and Human Services’ Office for Civil Rights finalized its finding this month that a physicians’ group violated the Privacy Rule of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The agency has imposed a monetary penalty of $4.3 million for the violations, representing the first monetary penalty issued by the agency for violations of the HIPAA Privacy Rule.  The increased penalty amounts were imposed under Section 13410(d) of the Health Information Technology for Economic and Clinical Health (HITECH) Act, which took effect in October 2009 and was intended to supplement and help enforce HIPAA.

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Because of the success the Janssen Law Firm had in litigation against nursing homes, people often ask us what they should look for in determining whether to put their loved one in such a home.   Starting January 1, 2011, it will be easier to make that determination.

As of that date, all California nursing homes will be required to post the ratings for that facility under the MEDICARE 5-STAR RATING SYSTEM.  That system looks at three different criteria to determine home’s rating: (1) health inspections; (2) staffing numbers; and (3) quality measures.

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Journalist Matt Drange of the Eureka Times-Standard covered the Lavender v. Skilled Healthcare jury trial, writing in depth in a three part series the stories underlying the class action law suit against Skilled Healthcare.  Drange noted that it was the longest civil trial in Humboldt County history, and the $677 million verdict was the largest trial result in the United States in 2010.

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NEW RULES ON CORPORATE DISCLOSURE MAY SPELL THE END OF HIDE AND SEEK BY NURSING HOMES

In recent years thousands of nursing homes across the nation have been purchased by large Wall Street private equity companies.  Unfortunately, the pattern has been that, once purchased, the private investors cut expenses and staff often below the legal minimum requirements.

Further, those companies have set up Byzantine structures to attempt to insulate themselves from liability and break up their corporations into innumerable LLC’s so that no one can determine who actually is responsible.  In bringing such lawsuits for elder abuse against nursing homes here in Northern California, we have often had to spend a substantial amount of time simply figuring out who actually owns and controls the skilled nursing facility.

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Complying with HIPAA and Responding to a California Criminal Subpoena for Patient Medical Records

If you’re a healthcare provider in Humboldt County,  no doubt you are aware of the complex framework of state and federal laws designed to ensure the privacy of patient records.   On occasion, healthcare providers receive requests to produce documents or testify in criminal cases.   Generally, in California, there is no doctor-patient privilege in criminal proceedings.   However, the state and federal statutes that govern the privacy of patient records still control.   It’s a bit of a maze, and one that probably takes hiring counsel to navigate.

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On September 10, 2010 the Honorable W. Bruce Watson granted preliminary approval to the settlement of the longest civil trial in Humboldt County history.   The settlement comes after the jury returned a $677 million dollar verdict in July.   Plaintiffs’ counsel Timothy Needham and Michael Crowley advised the Eureka Times-Standard that they were confident the settlement was in the best interest of the class given the threat of bankruptcy that faced the nursing home entity after the verdict was announced, and given that the court’s injunction order will guarantee adequate staffing in Skilled Health’s facilities.

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On August 27, 2010, the Honorable Judge W. Bruce Watson denied Skilled Healthcare’s Motion for Mistrial Based on Alleged Juror Misconduct.   After reviewing the declarations submitted by the defendants and the counter declarations submitted by plaintiffs the Court ruled that there was no juror misconduct and that “Defendants did not meet their burden of establishing misconduct, although the three affidavits presented constitute a prime facie showing of misconduct, they are rebutted in all important aspects by the counter declarations.”   Contrary to claims by defendants, the counter declarations revealed that the juror in question did not make any false statements, did not fail to disclose any information, and did not know one of the plaintiffs or have prior knowledge of an event regarding one of the defendants.

The Court’s Order preserves the largest jury verdict in the United States this year and the largest recorded jury verdict in Humboldt County.

Read the court’s entire ruling here.

On July 6th, 2010 a Humboldt County jury returned a verdict in excess of $670 million dollars against Skilled Healthcare Group, Inc., Skilled Healthcare LLC and 22 subsidiaries located throughout California for violating the state minimum staffing requirements.  The plaintiff class was represented by members W. Timothy Needham, Michael Crowley, Amelia Burroughs and Patrick Griego of the Janssen Law Firm from Eureka, by Michael Thamer from Callahan,  and Chris Healey of the Luce Forward firm from San Diego.  This is the highest verdict ever achieved against a nursing home chain and one of the highest in the United States this decade.   In its verdict the jury found that defendants understaffing was done with malice.   The jury will return on July 15th to decide the amount of punitive damages the defendants should pay as a result of their misconduct.   The specific Skilled Healthcare facilities sued were Alexandria Care Center, LLC, Alta Care Center, LLC, Anaheim Terrace Care Center, LLC, Bay Crest Care Center, LLC, Brier Oak on Sunset, LLC, Carehouse Healthcare Center, LLC, Devonshire Care Center, LLC, Elmcrest Care Center, LLC, Eureka Healthcare and Rehabilitation Center, LLC, Granada Healthcare and Rehabilitation Center, LLC, Hancock Park Rehabilitation Center, LLC, Montebello Care Center, LLC, Royalwood Care Center, LLC, Pacific Healthcare and Rehabilitation Center, LLC, Seaview Healthcare and Rehabilitation Center, LLC, Sharon Care Center, LLC, St. Luke Healthcare and Rehabilitation Center, LLC, Sycamore Park Care Center, LLC, The Earlwood, LLC, Valley Healthcare Center, LLC, Villa Maria Healthcare Center, LLC, Willow Creek Healthcare Center, LLC.