September 20, 2000
SPRINGFIELD, IL The owners of the Lexington Nursing and Rehab Center have voluntarily surrendered their license to operate the 52-bed intermediate care facility and agreed to pay a $25,000 fine as part of a settlement agreement with the Illinois Department of Public Health, Dr. John R. Lumpkin, state public health director, has announced. In addition, the owners stipulated they will not apply for a license to operate a nursing home in Illinois for at least 24 months. The settlement does not effect the operations of the owners' four other Illinois nursing homes, which are located in Danville, Greenville, Urbana and Virden. In March 2000, the Department ordered an emergency suspension of the Lexington facilitys operating license due to an immediate and serious threat to the residents safety.
THE DEPARTMENT OF PUBLIC HEALTH,
LEXINGTON NURSING & REHAB CENTER, L.L.C.,
Now come the Complainant and the Respondent, by their attorneys, and request the Director of the Illinois Department of Public Health to issue a Final Order in the above-captioned consolidated matters consistent with the following.
1. The Illinois Department of Pubic Health (Department or Complainant) is designated as the State Agency to administer the provisions of the Nursing Home Care Act (210 ILCS §§ 45/1-101, et seq. (1993)) (the Act).
2. Lexington Nursing & Rehab Center, L.L.C., d/b/a Lexington Nursing & Rehab Center (Lexington or Respondent) was, at all pertinent times, licensed by the Department under the Act and the Skilled Nursing and Intermediate Care Facilities Code to operate a nursing facility located at 301 South Vine Street, Lexington, Illinois 61753, and was, at all pertinent times, certified to participate in the Medicaid program, Title XIX of the Social Security Act (the Medicaid program).
February 2000 Surveys
3. On or about February 16, 2000, employees of the Department conducted an inspection at Lexington to determine its compliance with Federal certification requirements for nursing facilities participating in the Medicaid program. In correspondence dated February 17, 2000, the Department alleged that Lexington was not in substantial compliance with Medicaid program requirements, and recommended or imposed certain remedies against the facility.
4. Lexington timely requested a hearing to contest the Departments allegations, determinations, remedies, and notice set forth in paragraph 3 above. This matter bears Docket No. NH-T154.
5. On or about February 22, 2000, employees of the Department conducted a revisit at Lexington. No additional deficiencies were alleged; however, according to the Department, outstanding deficiencies continued to exist. No additional remedies were recommended or imposed; however, all proposed remedies recommended or imposed in the Departments February 17, 2000, notice continued in effect.
March 2000 Surveys
6. On or about March 8, 2000, employees of the Department conducted an inspection at Lexington to determine its compliance with Federal certification requirements for nursing facilities participating in the Medicaid program. In correspondence dated March 9, 2000, the Department recommended or imposed various remedies against the facility.
7. In correspondence dated March 10, 2000, the Department amended its March 9, 2000 correspondence to correct an error in the remedies section and to modify the wording under the directed plan of correction.
8. Lexington timely requested a hearing to contest the Departments allegations, determinations, remedies, and notices set forth in paragraphs 6 and 7 above. This matter bears Docket No. NH 00-T188.
9. In correspondence dated March 21, 2000, the Department provided Lexington licensure findings regarding the March 8, 2000, survey. Lexington submitted comments to the findings on April 7, 2000.
10. On or about March 16, 2000, employees of the Department investigated an incident report at Respondents facility. In correspondence dated March 24, 2000, the Department alleged that additional deficiencies existed; however, no additional remedies were recommended or imposed as a result of the investigation. In additional correspondence dated March 24, 2000, the Department advised Lexington of licensure findings pertaining to the March 16, 2000, investigation. Lexington submitted comments to the findings on April 17, 2000.
11. On or about March 24, 2000, a survey was conducted by the Department at Lexington. In correspondence dated March 25, 2000, the Department alleged that additional deficiencies existed. No additional remedies were recommended or imposed.
12. On or about March 27, 2000, the Department issued Lexington a Notice of Emergency License Suspension which resulted in the suspension of Lexingtons license to operate the facility.
13. On March 29, 2000, Lexington timely requested a hearing to contest the Departments Notice of Emergency License Suspension, and to contest the Departments allegations, determinations, remedies, and notices set forth in paragraphs 6, 7, 10, and 11 above. This matter bears Docket No. NH 00-o123.
14. The Department and Respondent have agreed, in order to resolve this matter, that Respondent be permitted to enter this Consent Agreement and Request for Final Order (Consent Agreement) with the Department, providing for the imposition of certain provisions that are consistent with the best interests of the People of the State of Illinois, subject to the entering of a Final Order dismissing these consolidated matters.
15. In mitigation of the allegations, determinations, remedies and notices issued in Docket Nos. NH 00-T154, NH 00-T188 and NH 00-o123, Lexington incorporates by reference its written requests for informal dispute resolution responses (IDRs), evidence presented during the in-person IDRs, and its written comments to the Departments February 16, 2000; March 8, 2000; March 16, 2000; and March 24, 2000 surveys. In further mitigation, Lexington states that it did not knowingly employ, as the term is used in the federal regulations, an individual who had been found guilty of abusing, neglecting, or mistreating residents by a court of law; nor did it knowingly employ, as that term is used in the federal regulations, an individual who had had a finding entered into the Departments Certified Nurse Aide Registry. Lexington further submits that its residents were pre-screened and certified as appropriate for an intermediate level of care by Dr. Hwan Jon Jeong, a physician properly licensed in the State of Illinois. Finally, Lexington submits that it acted, at all times relevant to those consolidated matters, professionally and competently and with integrity, in performing its responsibilities under the Act and in the Medicaid program, and that it was financially sound.
16. This Consent Agreement is the result of a compromise and settlement and is not a determination of liability. Nothing contained herein shall constitute or be considered an admission of any kind by Respondent, nor shall anything herein be considered a reflection of any weakness of proof by the Department. The parties agree that this Consent Agreement is entered into solely for the purpose of settlement and does not constitute an admission or an admission of any liability or wrongdoing by Lexington, its parents, subsidiaries or other related facilities or their directors, members, officers, managers, employees, agents, successors, assigns and attorneys.
NOW, THEREFORE, in consideration of the aforesaid Recitals and representations, the mutual covenants and provisions hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties hereto, it is agreed by and between the parties as follows.
1.1 The Department agrees to delete all references from the February 16, 2000, Statement of Deficiencies (SOD) to Federal Identification Tag Number F490. The February 16, 2000, SOD is amended, nunc pro tunc.
2.1 Lexingtons owners, as that term is defined in Section 1-119 of the Act (the Owners), and any person or entity described in Section 3-117(5) of the Act, will not apply for a license under the Act to operate another nursing facility for 24 months from the date of the Final Order. This consideration specifically excludes applying for renewal licenses for the following facilities: Country Estates of Greenville; Danville Nursing and Rehab Center; Urbana Nursing and Rehab Center; and Virden Nursing and Rehab Center.
2.2 Respondent voluntarily relinquishes its license to operate the nursing facility located at 301 South Vine Street in Lexington, Illinois. The voluntary relinquishment of its license shall not be construed as an admission of fault, liability, or wrongdoing by Respondent, its Owners, directors, members, officers, managers, employees, agents, successors and assigns.
2.3 Respondent agrees to pay the sum of $25,000 per the terms set forth in paragraph 2.4 below.
2.4 Respondent shall deliver to the Department payments in the amount of $5,000 per month for five months, the first payment beginning 30 days after the date of the Final Order.
2.5 Respondents payment in the amount of $25,000 shall be in full satisfaction of all matters in controversy for which these consolidated matters were sought by the Department against Respondent, and shall not be construed as admission or as an admission of fault, liability or wrongdoing by Respondent.
2.6 Respondent hereby withdraws its requests for hearings in these matters, thereby expressly waiving its right to contest the Statements of Deficiencies, as described in paragraphs 3, 5, 6, 7, 10 and 11 of the Recitals, as amended by this Consent Agreement.
3.1 This Consent Agreement shall become binding on, and shall inure to the benefit of, the parties hereto, their successors, or assigns immediately upon the execution of this Consent Agreement by the Departments Director, or his designee, dismissing the above-captioned consolidated matters with prejudice.
3.2 The provisions of this Consent Agreement shall apply notwithstanding any transfer of facility ownership of interest. Should Respondent fail to comply with any provisions of this Consent Agreement , the Department may reinstate this action against Respondent, and if Respondent no longer exists as a legal entity, said action shall proceed against any person having five percent (5%) or more interest in Respondent.
3.3 In the event that any of the provisions of Article II are not complied with within the times specified therein, this Consent Agreement will be held for naught, except for the provisions referred to in paragraph 2.6 wherein Respondent has withdrawn its requests for hearings to contest these consolidated matters.
3.4 The parties agree that the voluntary relinquishment of Respondents license is not and is not to be construed as an admission or evidence that Lexington, or its Owners, directors, members, officers, managers, employees, agents, successors and assigns were unqualified or incapable of meeting or maintaining a facility in accordance with the standards and rules promulgated by the Department under the Act. Further, the parties agree that if the Owners, individually or collectively, apply for a license under the Act to operate another facility after the expiration of 24 months from the date of the Final Order, that this Consent Agreement shall not constitute or be considered an admission of evidence that there was a substantial failure by the Owners, individually or collectively, to comply with the Act or the rules and regulations promulgated by the Department under the Act.
3.5 It is hereby agreed that these consolidated matters be dismissed with prejudice, all matters in controversy for which these matters were brought having been fully settled, compromised, and adjourned.
3.6 This Consent Agreement constitutes the entire agreement of the parties, and no other understandings, agreements, or representations, oral or otherwise, exist or have been made by or between the parties. The parties acknowledge that they, and each of them, have read and understood this Consent Agreement in all respects.
of Public Health
535 West Jefferson Street
Springfield, Illinois 62761
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