July 7, 2005
Court-appointed trustees will assume the operations of 13 Texas nursing homes that are controlled by corporations headed by parent company Foremost Care Inc., Texas Attorney General Greg Abbott announced.
The Texas Department of Aging and Disability Services (DADS), which ensures the states nursing homes meet state health and safety standards, asked the Attorney General to seek appointment of the trustees. The order, issued by the 354th District Court in Travis County, appoints three trustees to manage the nursing homes and authorizes the state to tap an emergency trust fund to pay current operating expenses and provide for continued patient health and welfare.
These nursing homes face a financial crisis that must be remedied for the good of the seniors who live in these facilities, said Attorney General Abbott. Todays action will make sure that the best possible quality of care is maintained until a long-term solution is found.
A federally appointed bankruptcy trustee determined in June that the nursing homes did not have sufficient funds to pay staff who are entrusted with the care of residents or suppliers of goods and services critical to maintaining the facilities.
DADS Commissioner Jim Hine added: Our first priority is the well-being of the residents of these nursing homes. We appreciate Attorney General Abbotts quick action in this matter. DADS staff will work closely with the court-appointed trustees to protect the residents who live in these facilities.
The court order authorizes the three nursing home trustees to take administrative control of the homes, including managing and paying staff and vendors, maintaining patient records, and contracting with DADS for Medicaid services. The trustees were granted a total of $1 million from the states Emergency Nursing and Convalescent Trust Fund to carry out the court order.
The court also issued a temporary restraining order to prevent Foremost Care or any of the other defendants from interfering with the trustees performance of their duties. A hearing on establishing a temporary injunction is scheduled for July 14.
The Texas Health and Safety Code provides for the involuntary appointment of a trustee if there is an immediate threat to the health and safety of the residents of a nursing home, and for the trustee to operate the home in the event of a closure if arrangements for relocation of the residents to other licensed institutions have not already been made.
The 13 nursing homes are:
• Abilene - Spring Season of Abilene
• Beeville - Spring Season of Beeville
• Corrigan - Crestview Villa
• Cuero - Spring Season of Cuero
• Elkhart - Spring Season of Elkhart
• Fort Worth - Spring Season of River Oaks
• Groesbeck - Sunbranch Nursing Center
• Hurst - Hurst Plaza Nursing & Rehabilitation Center
• Mart - Spring Season of Mart
• San Marcos - Rivercrest Nursing and Rehab
• Sherman - Spring Season of Sherman, dba Post Oak Care & Rehabilitation
• Vidor - Spring Season of Vidor
• Wells - Hillside Health and Rehab
