Complaint Investigation Report

019200474-9-18-2023-15-AS-JWAN-CVSNXA-20230918105045

STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

CCLD Regional Office , 1515 CLAY STREET, STE. 310

This is an official report of an unannounced visit/investigation of a complaint received in our office on

02/16/2022 and conducted by Evaluator Jennifer Walden

COMPLAINT CONTROL NUMBER: 15-AS-20220216085039

Provider failed and refused to disclose to residents all the bases on which increases have been estimated.

Complainant alleges that Provider failed and refused to disclose to residents all the bases on which increases have been estimated which is in violation of H&SC §1788(a)(22)(B) states, “For monthly fee continuing care contracts, except prepaid contracts, changes in monthly care fees shall be based on projected costs, prior year per capita costs, and economic indicators.”

The Department interviewed Ezekiel Griffin, Executive Director -Stoneridge (ED), on March 1, 2022 and March 9 and Warren Spieker, Managing Partner of Continuing Life, Inc. (MP) on December 14, 2022 and received and reviewed the following documents:

• FYE 2020 – 2023 Budget Presentation PowerPoints provided to compare.

• Budget Updates July 2022 – September 2022

Based on the review of all documentation provided and the request of information by the complainant, the Providers provided information that was sufficient and thoroughly detailed the factors that went into the Monthly Care Fee Increase (MCFI). Additionally, the statutes do not specify how granular the description of the basis of increases must be as long as the factors are based on projected costs, prior year per capita costs, and economic indicators. The Department has determined that the allegation is “unsubstantiated” due to lack of evidence that the provider failed to disclose the factors used to in determining the MCFI.

Amended findings were shared by via Teams with Ezekiel Griffin 9/16/2023 at 9:30am. Signed copy of LIC9099 emailed.