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CALIFORNIADEPARTM,6T OF HEALTH SERVICES NUMBER: 24-01 DATE: April 4, 2001 FOR RELEASE: IMMEDIATE CONTACT: Ken August <http://www.dhs.ca.gov/> or Lea Brooks (916) 657-3064 PROMPT ACTION BY STATE HEALTH DEPARTMENT STABILIZES THREE NURSING HOMES SACRAMENTO - Using increased funds made available last year by Governor Gray Davis to enable the state to quickly take over troubled nursing homes, the California Department of Health Services (CDHS) has appointed a temporary manger to operate three nursing homes in San Joaquin and San Bernardino counties that were abandoned by the licensee. CDHS appointed a temporary manager to operate the facilities after the current licensee abandoned the facilities' nearly 300 residents. The state's ability to act quickly avoids the abrupt closure of the nursing home facilities and the potential trauma to fragile residents of being transferred. CDHS appointed Ensign Group of San Juan Capistrano to temporarily manage the Lodi Health Care Center in San Joaquin County on March 30, and the Crescent Alzheimer's Care Center and Crescent Care Center, both of Yucca Valley in San Bernardino County, on March 31. "The Governor has always exhibited concern for and commitment to the care and safety of the elderly and others who must rely upon nursing homes for care," said State Health Director Diana M. Bonta, R.N., Dr.P.H. "He recognized that emergency resources would be needed to protect this vulnerable population and took the necessary steps to increase the emergency account from $1 million to $10 million. The Ensign Group, which operates 19 nursing homes in four states, including two in California in Norwalk and Panorama, will temporarily operate the three facilities until a new licensee is found. As temporary manager, the company is charged with operating the facilities in accordance with both state and federal requirements. CDHS began monitoring the facilities several weeks ago after receiving reports of financial problems. Last week, the residents' health and safety was threatened when Rocky Lemon, owner of Oklahoma-based TLC Health Care Inc., conducting business as Crescent Health Care, did not pay bills for food, medical supplies and garbage service. In addition, local banks did not honor some staff payroll checks. The department also audited patient trust accounts to make sure no funds had been inappropriately diverted, identified funds to purchase food and other supplies to keep the facilities operating, and set up authorization for the temporary manager to request funds from the State Citation Penalty Account for facility operations. "Staff persevered despite uncertainly about their stores of essential food medical supplies and payroll checks," said Director Bonta who commended the staff of the facilities for their dedication to the residents. CDHS has referred the case to the California Attorney General's Office for possible criminal charges of abandonment. -000-