In an Oregon Lawsuit Holiday Management has been charged with
Over the three day weekend I stumbled across an article titled “Veterans Accuse Senior-Living Retirement Chain of Elder Abuse” The crux of the article is that Holiday Retirement is targeting low income veterans with the promise that a special veterans program called “Aid and Attendance and Home-bound Status (‘Aid and Attendance’)” will make the unaffordable affordable. Here’s what it looks like:
- There are four co-defendants who contend Holiday is preying on elderly veterans and their spouses by claiming the “Aid and Attendance” plan will cover the high costs of housing charged by Holiday, who promises to initially defer rent payments and that when the benefits don’t come through, the residents are hit with big bills for the deferred rent.
- They claim that while actual admission documents disclose that there is no guarantee that the funds will come through, the verbal promises and pressure are in effect an “inducement” to take on the unreasonable and unfair risk of agreeing to pay rents they cannot afford.
- According to the article, Holiday is very specifically targeting low-income elderly war veterans and mis-representing that these residents will be able to receive “Aid and Attendance” benefits in a very short period of time.
- In addition the lawsuit claims that by moving into a Holiday community it would increase the likelihood of receiving these benefits and that Holiday would help with the application process.
Ominous Signs
- We need to be careful with this story, because a filed lawsuit does not mean the allegations are true and almost certainly at the very least, they did not paint a complete picture of what actually happened. There are too many attorneys looking for causes and cases and so we need to watch this develop.
- Too often, individuals and families take on foolish obligations (never more evident than the recent mortgage debacle) and when those foolish obligations inevitably go south, rather than owning their foolishness, they look to blame others. I can’t help but think that at least to some degree this is another example of that kind of thinking.
- Perception is reality #1: This story and the Emeritus story will be like waving a red cape in front of a bull, to attorneys. I am fearful that senior living will become the new target for ambulance chasing attorneys which will increase costs and make senior living more expensive for residents and become a major distraction for operators.
- Perception is Reality #2: If stories like this keep emerging they will become a political hot potato which will mean more regulations, something that hurts good providers and perhaps at best makes bad providers marginally better.
- Perception is Reality #3: As seniors see stories like this it will be much harder to sell senior living as a better lifestyle for seniors.
- Stories like this suggest there are in fact many senior living buildings that are struggling to keep beds full and that in fact, they are taking on residents who have higher care needs and lower financial resources than they would if their local markets were stronger.
We need to be so so careful that we have great transparency with our residents and their families, carefully outlining what we can and cannot do; what things costs and with the risks are. We need to develop deep true friendships with our residents and their families. These two things will reduce risks and increase profits. It if my fervent hope this legal action will evaporate and Holiday will be vindicated.
The VA stopped funding Aid and Attendance for Independent Living last October. Holiday did not get the word out to their management staff (at the very least).
The allegations are 100% true. I worked for Holiday and witnessed this firsthand. They tried to cover themselves by offering not to charge the back rent if the A&A didn’t come through, but … they also kicked the veteran out of the community if they couldn’t pay.
Holiday Retirement is the worst excuse for a company. When the Colsons owned it. the company truly cared about its residents. Once Fortress took over it became nothing but a money-making machine. No consideration whatsoever for residents, employees…nothing.. just making money.
Then, after working managers to the bone and allowing time for them to bond with the wonderful people they serve, a new group of “regionals” would come along and clean house. The residents’ voices were not heard and nobody but the managers cared about their feelings… It’s really a sad situation.
I have heard that Bart Colson is absolutely sick about what has happened to the company his father worked so hard to build.
My advice is for everyone, potential staff or residents, to run, not walk, away from this company.
Hi Steve,
Are they not Co-Claimants? I didn’t understand co defandants.
Yes, Steve, I agree with what you said. Well put – and I’d go so far as to say “no good deed goes unpunished”. We have waited VA benefits now over a year for one lady. I didn’t demand a copy of the submitted application and it turns out because I took less in the short run (agreed for 6 month only, initially) then they said I was wrong for wanting to “raise the rates” to the agreed rate, when it hadn’t yet been a year…
They Really only applied After she was With us 6 months already, so now I should wait “until she actually Gets benefits.” and he’s “looking into other options” for mom.
By the way, mom doesn’t like the food (cleans her plate) she says she often “feels has to wait too long” when she rings the bell, we should not be paid the full amount anyway because her son takes her home on the weekend with him, and mom’s favorite caregiver was asked how much to stay with mom 4 to 5 days at Their home! She’s the one mostly cooking the food she doesn’t like and making her wait too long, lol.
Yes, I agree, perception is reality in the minds of an increasingly entitled and litigious society. Lawyers win in the end when lawsuits are popular.
Greed can take many forms, and it is not all corporate. I know of quite a few places that would agree to temporarily accept discounted rates or defer costs for a low income veteran who should qualify for VA Aid & Attendance benefits. As long as they are not misrepresenting anything or trying to overcharge or “upsell”, it seems like a compassionate gesture with little risk for the resident or family, and most of the financial risk is with the facility. It can take a year or more for this benefit to be approved, and if they pass away during that time it is lost. There is also the “Catch 22” situation for the veteran, because they need to document they are receiving assistance with ADLs to apply, and if they are low income they are not likely to afford a caregiver at home.
I have seen many instances of families asking for reduced rates or deferral agreements for part of the cost until VA benefits are approved. In many cases, after a facility provides care for a year or more at low cost, once the family receives that first lump-sum check, they will often try to hide the fact, or will suddenly find a reason to move the resident out (from a place that was previously just fine when it was all they could afford) on trumped-up complaints, all to avoid paying what they agreed. I have heard of residents moved out in the middle of the night because now that they have money, family members have decided to care for them at home, or relocated to other places without notice. It’s sad to say that it’s rare to hear of families happily honoring their agreements without complaint after the long wait for VA benefits.
Reputations are developed over time. This is not the first time that Holiday has been in the hot seat regarding Veteran Benefits. What everyone can and should learn from this are good business practices, honesty and integrity. The Aid and Attendance benefit is solely for those needing help with at least 2 ADLs, whose costs exceed income and the liquid assets are not enough to cover the cost of care for more than about a year. In order to account for the cost of the housing AND the care, it must be in an Assisted Living setting. If it is just home care in an Independent Living situation or at their house, the only charges that can be counted as medical expenses are the cost of the care and regularly occurring other medical expenses, not the living expenses. Independent Living with home care is NOT Assisted Living,
To some who may want to push the envelope, this may seem too conservative an interpretation. But please remember…Independent Living with added home care services is NOT Assisted Living, which has to be licensed by the state.. A conservative interpretation of the requirements will avoid disappointments. A retirement community or Assisted Living should never “count” on those benefits and reduce fees up front. After all, the money is paid to the Veteran, not the community and we have no claim on it. It has been my approach to recommend the family use savings, or contribute to their loved one’s expenses if they can, and then pay themselves or the savings account back when (and if) the retroactive benefits come through.
This is the most detailed explanation I have ever read about the qualification criteria — thank you!
Emeritus and Holiday, combined, have shed negative attention on our otherwise loving profession. Let’s hope people who read about Emeritus and Holiday are able to identify these as large providers who have become sloppy/overeager and NOT as representative of our profession.
Smaller assisted living facilities are more representative. They have a better staff-resident ratio and are able to provide the loving care residents need. Sure, I am biased. My clients are on the small side. My clients have also educated me on staff-resident ratio and tactics some homes use to reduce costs. Let’s be thankful smaller providers are doing this because it is something they love. They are NOT trying to maximize corporate profits.
This is why you need to visit a facility in advance. You can find out if the facility provides the loving care that the owner wants to provide, or if it is part of a profit making machine that consistently strives to reduce costs. I am afraid some folks rush into the “we need to find somewhere for mom to live yesterday” mindset and choose the first big name they can find.
It is my understanding that this is an assisted living VA benefit. In my markets Holiday is an IL and not a licensed AL. They do compete by strategically providing or arranging for ADL services to allow the resident to age in place thus avoiding resident move outs to AL. In this case, I would be surprised if the VA benefit does cover Holiday’s rent.
You are right the VA will not count IL expenses as a medical expense if that is all the care the person is getting. The The VA rules state that the VA will count some of the rent for an IL if their doctor states that they need to live in the IL because of their need for a protective environment and a third party must be providing assistance with needed ADLs. That still does not mean all of the cost will be counted as a medical expense. It also does not mean the VA will follow its own rules.
Perhaps the industry would be looked upon more favorably if the players would do the right thing, act in an honorable manner, practice transparency and have faith in their mission. How about looking at potential customers as people or residents and not “beds to fill.” I am uncomfortable with the tone of this blog and some of your comments about Emeritus, as I perceive you to too easily come down on the “side” of the provider rather than the individuals seeking care. Sometimes regulations are needed because companies will not do the right thing — I’d say these two companies are pretty good case studies. We should be looking at what we do, how we can serve, rather than planning to dodge regulations and lawsuits. Take the high road and do the right thing.
Based on the article, some of the comments, and my personal experience with holiday seems like there is some truth to the claims. What I don’t understand is why Holiday would want low income veterans to enter their community unless they truly believed their residnets would get the benefit and so holiday would get paid.. From first hand experience the Aid and Attendance benefit is tricky and time consuming assuming the resident and his family complete the paperwork in timely manor (which is hard enforce once the resident has moved in). Our community has been burned a couple of time when we allowed residents to move in prior to receiving their benefit and pay back the deferred rent later. After months is defferred rent adding up and no A&A benifet we were forced to relocate a few seniors how owed us large balances which turned on into uncollected bad debt. We learned our lesson and no longer engage in this practice because it does not make sense from a business standpoint.
I warned the powers that be at Holiday 3 yrs ago.I met with their now CEO and expressed concern that were going down the wrong path and that the VA was monitoring senior housing for abuse of the Aid & Attendance benefit/ Hmmmmm…guess they should have listened.
In my role as development manager for South Bay Partners, I am often in our competitor’s facilities as we evaluate new markets. And while I always identify myself as someone looking to bring competition to their market, I am almost always impressed with the angels among us who have made their life’s vocation to care for our parents, aunts, uncles, grandparents, and friends when daily living can no longer be self administered. Although I have encountered some buildings that lacked aesthetic appeal, the caregivers overwhelmingly have a loving relationship with the souls under their roof.
It gnaws on my heart that there must be outliers in our industry because I have not encountered the monsters cited in these investigations. We serve an industry where angles walk amongst us, and it brings a tear to my eye every time I see them. They possess the strength to provide care amongst often disheartening situations.
I hope there are more cheering sections and less witch hunts in our future. Leading by positive example will do infinitely more good for senior care than solely magnifying pockets of disgrace.
Holiday Retirement is a horrible company. They bill many residents for money they do not owe continuously and do not correct their errors even after you complain. I suspect they hope that the elderly residents will be confused and pay the inaccurate bills. The staff treat the residents very badly, yell at them, deny them small amounts of food. Do not let anyone you know work at or live in any Holiday Retirement branch.
As a former sales manager for Holiday Retirement I can tell you that any and almost all accusations made here are in fact true in all aspects of the topic. When i started working for them they seemed like a legit company. I fell in love with the job, with the residents, and with the staff. I started with the company just a few months after they purchased it from the Colson’s. We had only heard good things about them.
The communities I worked for were in nice neighborhoods and most of our residents did not struggle to pay the rents. However after several years of getting quality move ins I was asked to take over a lower income property that was in dyer straits to make their Census. There was just not enough people with the money in that area to pay the rent they were asking. So I will, in quick detail tell you what I was asked to do.
1. Seek out low income veterans and tell them about a “deferral program” that Holiday was offering. Where we would infom the senior about the benefit, and defer a portion of their rent that they were expected to recieve while they applied for the benefit with the expectation that they would pay back the deferred amount when approved.
2. Advise the resident that they would only recieve the benefit if they were getting help with at least 2 ADL’s on a regular basis and get them in contact with our “in house” care program so they could sign up for those ADL’s
3. Refer them to financial advisors so they could move money from their personal accounts into accounts of their children so they would qualify for the benefit if they had too many assets
4. Make them believe, just as I was made to believe that it was an “up and up” program and we were just offering the information out to them.
Now I must admit that the whole idea seemed Sketchy….becuase it was. We were not an AL Community. And many of the residents getting ADL assistance such as med reminders and shower assistance did not NEED that assistance but it was required to qualify for the program.
After months of doing this “deferral program” we were asked to lower the amounts deferred becuase so many applicants were getting denied benefits. So they were being asked to leave the communities that they had become accustomed to. And then at some point we were asked to stop the deferral program all together.
Now, as a moral person, I chose to explain in detail to these families what they were getting into. I only offered 3 deferrals for residents in the time I worked at the properties. And to this day, all of those residents still recieve the benefit. I chose to take a stand and make sure that if they could not afford to live in the community, I did not push them to move there based on false hope. I am very sad to say that this was not the approach that my Regional manager wanted me to take.
Working for the compnay for as long as I did was rare. Many times sales managers did not make it more than 5 months or so before their regional managers came in and cleaned house becuase they were not pushing hard enough. Not making enough phone calls, not telling enough lies to get these poor elderly families to move just days after their first visit to the community. Like we were selling cars. I layed low, kept my head down and chose to do the right things. And then I got the hell out of there when they started asking me to make 100 phone calls per day.
Why? you ask…. well lets see, We would have a lead base of about 700 names and phone numbers per property. So that meant that I was calling these people EVERY WEEK!!! Every week!!!! This is not acceptable. These are seniors, they do not make hasty decisions, they do not like to be forced into spending money they barely have, they do not like to be rushed out of their 4 bedroom house they have lived in for 40 years into a small 400 sq foot apartment that they can barely afford. And they sure as heck didn’t want to be bothered with me calling them on a regular basis after they have already told me time after time that they were not ready to move. And that’s when I had to leave. I was calling closed leads, talking to people who’s parents had already died, talking to seniors that had told us time and time againg that they were not interested in living with us and asked to be taken off the call list. But there I was, being forced to do it anyway.
So back to the veteran’s benefits…. yes it’s true, Holiday Retirement did pressure veterans to move into communitites under false pretense that somehow the government would pay for the majority of thier outragious rents. Yes, they did target low income veterans by even stooping to ordering lists of addresses based on household income and veteran status to invite them into to learn more about the A&A Benefit. And yes, they have, for at least 5 years now, been embarassing their company, their morals, and their founder. Most of all, their employees.
I’m not sure which facility you worked for, but the scenario you presented sounds very similar to the two Holiday facilities in the Des Moines area. I am hoping the U.S. Attorney General and Iowa Attorney General will undertake a like investigation here in Iowa. Veteran’s were preyed on in the same fashion; even asked to hire family members to satisfy the A&A requirements, so the money paid for services to the veteran were returned via the family member.
GREAT JOB OREGON.