complaint·July 21, 2025

It was alleged that R1 was overcharged and not refunded by $22.58 in fees for basic services. LPA inspected the facility, conducted health and safety checks on residents, and observed no health and safety issues. LPA reviewed R1’s Admission Agreement which indicates R1 moved in on August 15, 2022, R1’s monthly rate for basic services was $1,400, and that prorating of the monthly rate is based on a 30-day month. R1 stated that when they moved in, their $1,400 fee should have been prorated to $700 based on 15 days between August 15 through August 30, 2022 based on the Admission Agreement’s 30-day month prorate rule, but instead their $1,400 fee was prorated to $722.58 based on 16 days between August 15 and through August 31, 2022. LPA reviewed a calendar which confirmed that August 2022 had 31 days in it. Based on the Admission Agreement, R1 was overcharged by $22.58 in August 2022. However, R1 never told the facility about this issue and AD denied ever being notified about this billing issue but was unable to provide documentation regarding how much R1 paid in August 2022. Per AD, R1 is back paid on their monthly fees in the amount of $2,500 and has been back paid on their monthly fees since June 2025. LPA reviewed R1’s Billing Statement which shows that R1 has been back paid on their monthly fees since June 2025 and has a current outstanding balance. While R1 is not entitled to a refund because they have an outstanding balance, they are entitled to a credit of $22.58 on their outstanding balance because the facility made a billing error based on the prorating provision of the Admission Agreement. During the course of the investigation, the Department obtained sufficient evidence to substantiate the allegation mentioned above. The preponderance of evidence standard has been met; therefore, the above allegation is Substantiated. See LIC9099D for cited deficiencies per Title 22 Division 6 of the California Code of Regulations. An exit interview was conducted and a copy of this report and appeal rights was discussed with and provided to facility representative.