Free Letter - District Court of Delaware - Delaware

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n I August 26, 2005
Daniel R. Levinson
Inspector General
05ce of the Inspector General
United States Department of Health and Human Services
Hubert 1-lumpltrey Building, Room 416 G
200 Independence Avenue, SW
washington. DC 20201 I
Dear Mr. Levinson:
Beverly Enterprises (HEI') is an Arkansas-based company that employs 34,300 people
nation wide and 3,100 in Arkansas. It operates 350 nursing across the country, including
many in Arkansas. BEI has recently entered into an agreement to be purchased by North
America Senior Care (NASC).
Previously, 'NASC acquired another compmy, Mariner Health Care, which provided
nursinghome care, and it appears that after making tt signiiieant dianibution of money to
. shareholders, the company is now in considerable Emncial trouble, and is not meeting its
financial obligations to creditors or its obligations to patients. Tn light of these events, I
am consented that there is potential for the NASC purchase of BEI to result in e
significant hardship for many patients.
As part of s Corporate Integrity Agreement (CTA), which HEI entered into with the
Ofliee ofthe Investigator General ofthe United States Department ol`!-Iealth and T-lumen
Services, EBI residents were guaranteed that they would be protected by all federal
statutes and regulations, as well as by Bcverly’s policies and procedures which ere
discussed in the agreernent,
Mariner had previously entered into a sirniler CIA with your odice regarding obligations
io: care for its residents. There are now allegations and a pending lawsuit in Mississippi
that Mminer has engaged inmiseonduct and is not maintaining proper care. While I sm
‘ not melting o oornment with regard to the veracity of any of these allegations, I do believe
that you should be aware of them.
SDM I WJ tlntrr onnvrormn

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Mr. Levinson _
Page Two
Specifically, the CI.As signed by BE1 and Mariner were meant to ensure resident com and
safety. The dednitlve merger ofBevcrly with the group that previously purchased
Mariner causes aignincant concern that the provisions ofthe Cm will be circumvenred or
even voided by the merger. 1 respectfully request that your office take whatever
measures are necessary to require continued compliance with the one measures set forth ·
_ in the CIA entwod into by BE].
Once you have had an opportunity to review this matter. please let me know if you need
additional infonnation that my office may be able to provide. My office has previously
seat the Mississippi complaint to your office, which sn acknowledged receipt has been
‘ indicated thereofi I appreciate your cooperation in this matter and I await your response.
Sincerely,
Mark Pryor
United States Smaibf
. Cc: Honorable Charles Grassley
Honorable Max Baucus
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