The state health department yesterday fined an assisted living operator $262,500 for running four South Jersey facilities without a license and failing to show it was providing medical care to its frail residents. The trouble stems from the decision by Assisted Living Concepts, Inc. of Wisconsin this summer to surrender its assisted living license to run the dwellings as apartments....
The state health department yesterday fined an assisted living operator $262,500 for running four South Jersey facilities without a license and failing to show it was providing medical care to its frail residents.
The trouble stems from the decision by Assisted Living Concepts, Inc. of Wisconsin this summer to surrender its assisted living license to run the dwellings as apartments. But when the state Department of Community Affairs inspected the dwellings to license them as apartments, investigators found "at least three of the buildings have residents who need a fairly high level of health care," said state health department spokeswoman Marilyn Riley.
"It is clear that ALC is providing health care services, none of the buildings is a licensed health care facility, and the Department of Community Affairs has made it clear that none of the buildings qualify for licensing as non-health care facilities," Riley said.
Company President Laurie Bebo could not be reached for comment yesterday.
The state action comes after the Senate health committee approved a bill Nov. 8 prompted by the company’s decision to surrender its license. The bill (S-2284) would require assisted living facilities that surrender their licenses to set aside money to pay for Medicaid patients to live at another assisted living facility.
Gwen Orlowski, the former director of Elder Advocacy and the state Ombudsman for the Institutionalized Elderly, testified in favor of the bill. She also expressed frustration that the health department was slow to act to protect the residents.
Last night, Orlowski praised the health department for "doing the right thing. ALC was running an unlicensed assisted living facility and as a result put residents at real risk."
The order applies to Granville House in Burlington, Mey House in Egg Harbor, Lindsay House in Pennsville, and Goldfinch House in Bridgeton.
The Public Advocate investigated the company last year because company involuntarily discharged elderly residents who spent down their savings and sought Medicaid assistance – which provides facilities less compensation for their care.