SEATTLE, WA—June 2, 2008—Ninety-nine-year-old Cordelia Robertson has paid more than $330,000 to live at Franklin House Assisted Living Facility in Sumner, WA, a facility owned by Assisted Living Concepts, Inc. (ALC).  Two days after celebrating her 99^th birthday, Franklin House served her with an eviction lawsuit because she had converted to Medicaid. As part of ALC’s “strategy to move towards a higher mix of private pay residents,” the company has evicted over 300 elderly residents on Medicaid in 2007 alone, and nearly doubled its net profit, according to the company’s website. 

A 2007 federal government study reports that nationwide the assisted living Medicaid population has dropped by 6,000 in the last three years. “The reported drop in Medicaid coverage is cause for concern, as there already was a large unmet demand for affordable assisted living options for low-income, frail elderly Americans.” said Karl Polzer of the National Center for Assisted Living.

Mrs. Robertson is the last remaining original resident since ALC’s Franklin House opened ten years ago.  According to her son, Gene Robertson, she is being evicted despite multiple promises by Franklin House for over six years that she could stay once she went on Medicaid.  “I have had numerous conversations with Franklin House representatives, who have no sympathy for my mother’s situation,” says Gene Robertson. “The fact that this involuntary move will likely result in the death of my mother appears to have no bearing on their decision. When I recently spoke with Lauri Bebo, President and CEO of Assisted Living Concepts, she told me that my mother must leave despite earlier agreements and that she ‘couldn’t pencil her in’.”

Mrs. Robertson’s family is fighting the eviction.  Papers filed in the court by the family include three declarations by the Washington State Department of Social & Health Services showing that, contrary to statements by Franklin House, the facility had available Medicaid rooms for Mrs. Robertson at the time she finally needed to switch to Medicaid.  Franklin House claimed in a May 2007 notice to residents that the facility had reached its designated number of Medicaid residents.  By the time Mrs. Robertson—who has severe dementia—needed to convert to Medicaid in September 2007, three of the Medicaid residents at Franklin House had left, so there was ample room for Mrs. Robertson to remain at the facility while on Medicaid.

“We expect facilities to abide by their promises to residents.” said Louise Ryan, the Washington State Long-Term Care Ombudsman.  “This facility promised the family their mother could stay, and the records show that they had a Medicaid bed available at the time they tried to evict her.  When our attorneys dug into the records, we uncovered this deceptive practice by the facility and its owner, Assisted Living Concepts.  Involuntary discharges of frail elderly people from care facilities lead to the significant problem of transfer trauma, which causes increased mortality and morbidity.  This is a serious problem across our state and the country.” 

The Ombudsman Program worked with the Washington State Legislature in 2008 to pass the first law in the nation to protect Medicaid residents from discharge when an assisted living facility cancels its Medicaid contract.  Franklin House, however, kept its Medicaid contract but reduced the Medicaid numbers, so the new law, SHB 6807, provides the 99 year-old Mrs. Robertson with no protection from deceptive “bait and switch” tactics and eviction.

Assisted Living Concepts, Inc. is the sixth largest provider of assisted living facilities in the country.  It operates 216 assisted living facilities with more than 9,076 units in 20 states, including 21 facilities in Washington State.  According to ALC’s website, its net profit has increased four of the past five quarters, nearly double its profits in 2006, as a result of eliminating hundreds of its Medicaid residents.  If ALC were a nursing home, federal law would require the facilities to retain their Medicaid residents.  However, the federal laws do not apply to assisted living facilities, and thus provide elderly and frail residents no protection.

Cordelia Robertson’s eviction hearing is set in Pierce County Superior Court in Tacoma, WA on June 3, 2008 at 1:30 p.m. before Commissioner Meagan Foley.  In addition to Mrs. Robertson’s defenses she will claim Consumer Protection Act violations based on Franklin House’s unfair and deceptive business practices, and violation of the anti-discrimination laws.  Mrs. Robertson is represented by the law firm of Crollard Kahn, PLLC, who contracts with the Washington State Long Term Care Ombudsman Program to provide legal services to long term care facility residents.