Office review·November 28, 2022

At this office meeting present were: Jerome Haley, Licensing Program Analyst, Marina Stanic, Regional Manager, Icela Estrada, Program Administrator, Paramjit Judge, General Auditor III, Acting Assistant Program Administrator, Allison Nakatomi, CCCB Manager, Katie Anderson, Assistant Branch Chief, Jorge Mojica, General Auditor III, Jacqueline Juarez, Audit Manager, Randy Brown, Chief Executive Officer, Michael Beeman, Chief Financial Officer, Anna Hablitzel, Board Member, Stan Leach, Board Member, Jim Stearman, Attorney, and Pamela Kaufmann, Attorney. The purpose of this meeting was to elaborate on the plans that were discussed at the last meeting held November 14, 2022. The following topics were discussed: · Rescheduling the meeting to a later date · Rowntree Gardens Financial Plan and Viability of their program · Federal Grant Money · Entrance Fees and SNF Profitability · Accuracy of the 2 nd monitoring report (Dated 11/10/22) · Selection of a Management Company with decision making authority and Consultant Mr. Randy Brown asked the meeting to be rescheduled due to the financial plan that was intended to be submitted relied on entrance fees. Mr. Brown stated the accusation to rescind the rights of Rowntree Gardens (Rowntree) to engage in continuing care contracts was received the weekend before the meeting and a notice of defense is being filed. It was decided that the meeting would be rescheduled for December 12, 2022 to give Rowntree an opportunity to come up with a financial plan that addresses the financial concerns of the Department. Continued on LIC809 C Assistant Branch Chief Katie Anderson spoke about the financial situation of Rowntree and the viability of their program. Mr. Brown stated that Rowntree’s design was never intended to only be an RCFE and their business model includes entrance fees to finance other portions of their operating expenses. Ms. Anderson brought up the issue that Rowntree was having financial issues before the entrance fees were restricted. Department has been working with the Licensee on plans which they provided; however, Rowntree has not shown sustainable breakeven operations. Mr. Brown explained they tried to address its declining financial position in 2018 and 2019 with the change of its brand name, aligning operating expenses, and marketing; however, due to COVID-19, it was difficult to predict future operations for the last two to three years. Now with normalization, the future is more predictable and the Licensee will put together a plan after consultation with their team and other industry experts. There was further discussion regarding the reasoning why it could benefit the organization to hire a management company with the authority to make changes and how it could cause more financial obligations to the organization. The Actuarial Study from FY2020, especially the list of 12 bullets will be discussed at the next meeting. The next Office Meeting will be held December 12, 2022, at 11:00 AM. An exit interview was conducted, and a copy of this report was provided to the Licensee on December 12, 2022 via email for input, and an email read receipt confirms receipt of the report.