New Jersey's public advocate is investigating whether a company that operates assisted living facilities in the state is wrongfully discharging Medicaid patients, a charge the Wisconsin-based company denies.
Public Advocate Ronald K. Chen said Monday he's filed papers asking a Superior Court judge to enforce a subpoena he issued against Assisted Living Concepts, which operates eight assisted living facilities in southern New Jersey.
Chen said he's investigating allegations the company is discharging elderly residents or threatening them with discharge once they've exhausted their money and moved to Medicaid, a joint federal and state program that helps the poor pay for health care.
Chen wants the company to give him names, admission and discharge summaries and contact information for every resident of the company's New Jersey facilities who is or was a Medicaid beneficiary. The subpoena also seeks names and addresses of residents who have been discharged during the previous year.
"Our investigation indicates that this company is placing vulnerable elderly residents at risk by displacing them from their homes in violation of ALC's state license," Chen said. "Our primary concern is to protect the safety, well being and peace of mind of these residents."
Laurie Bebo, president and CEO of Assisted Living Concepts, said they have good legal standing to refuse the subpoena.
"We felt it was a violation of the privacy of the residents given that its a request for all personal information on all residents," Bebo said.
She said their license also doesn't include Medicaid requirements.
"We have no condition on our license that requires the Medicaid population," Bebo said.
She said residents are discharged for various reasons, but all state policies are followed.
"We have residency agreements with residents," Bebo said. "Those are written documents that the residents sign and there is no promise of Medicaid."
But Chen said state licenses for all eight of the company's New Jersey facilities provide that as many as 30 percent of the residents would be Medicaid eligible and no resident would be discharged because they spent all their own money.
A Thursday hearing has been scheduled on Chen's request.
Sen. Jeff Van Drew, D-Cape May, said he's drafting legislation that would bar assisted living facilities from discharging residents because they converted from private pay to Medicaid and require assisted living facilities in New Jersey admit Medicaid residents.
Assisted Living Concepts operates more than 200 assisted living residences with more than 8,300 units in 17 states. Chen said he hasn't contacted officials from other states about the company.
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