Complaint Investigation Report

019200474-8-29-2023-15-AS-ANAI-CVEQYA-20230906123445

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

06/30/2023 and conducted by Evaluator Jennifer Walden

COMPLAINT CONTROL NUMBER: 15-AS-20230630110029

Provider incorrectly included litigation expenses in the monthly care fee increase calculation.

Complainant alleges that the Provider included legal expenses in the monthly care fee increase and that those costs should not be included as “projected costs, prior year per capita costs and economic indicators,” under Health and Safety Code section 1788(a)(22)(B).

The Department interviewed complainant and Ezekiel Griffin, Executive Director and reviewed the following documents:

• Summary of projected legal expenses for 2022 and the 2023 budgeted legal expense

As to the 2022 projected legal expense and 2023 budgeted legal expense, the Department believes that legal expense to defend the community from suits can be an appropriate cost in the operation of a community. So, it does not find a violation as to the 2022 projected legal expense or 2023 budgeted legal expense. The Department has also determined that government-imposed fines and penalties, and government attorney fees do not constitute a legitimate cost of operation and may not be passed on to residents in monthly care fees; however, based on its review The Department has determined that these costs were not factored into the fee increase.

Based on the review and investigation the Department finds the allegation “unsubstantiated”.

Complaint finding were delivered via Teams and LIC 9099 was signed and emailed. Katie Anderson was in attendance.