complaint·August 29, 2023

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: • 2023 Budget Presentation • 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.