A Medical Device Daily

Residential elder care-operator Sunwest Management (Los Angeles) reported that it has recently settled two class-action lawsuits related to elder abuse.

One was in California, which was filed Dec. 21, 2007, in Orange County Superior Court, and one was in Oregon and has received preliminary approval by the Multnomah County Circuit Court and should receive final approval in February.

“I have handled hundreds of elder-abuse cases, and never before have I seen a company like Sunwest take a good hard look at itself and willingly come to the table prepared to take responsibility for its actions and to make changes to ensure its residents are given the best possible care it can give them,” said plaintiff attorney Stephen Garcia of the Garcia Law Firm (Long Beach, California).

Sunwest Management is not requiring that the settlements be kept confidential. Though the company is not admitting to the specific allegations by settling the cases, the litigation resulted in revealing areas needed to be improved.

The California action settled for $4.5 million, and the Oregon suit settled for $1 million. Sunwest is compensating the plaintiffs in each case with per-diem compensation for days spent in a Sunwest community during the specified time period. In California, this time frame is Jan. 15, 2003, through Jan. 15, 2007. In Oregon, the range is March 22, 2006, through March 22, 2007.

In the settlements, Sunwest also states that any money not claimed will be used for its facilities and for services for its residents. The company is agreeing to the appointment of an independent monitor who will undertake quarterly inspections of select Sunwest facilities.

Each of the class-action complaints alleged that Sunwest Management, its directors, and the approximately 16 residential elder-care facilities in the state of California and more than 50 facilities in Oregon that it owns, operates or manages, failed to comply with applicable laws and regulations governing the operation of residential care facilities for the elderly, resulting in the defendants receiving multiple citations of deficiencies from the California Department of Social Services and the Oregon Department of Human Services, respectively.

The lawsuits alleged that Sunwest and its facilities deliberately understaffed its communities by forcing each facility to operate under a budget, approved and directed by Sunwest Management and the directors of the individual facilities, that would increase business profits by charging for services that were not provided, such as adequately staffing the residential care facility as it advertises that it does.

Sunwest Management operates 250 elder-care facilities nationwide.