To Collect Debts, Nursing Homes Are Seizing Control Over Patients

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http://www.nytimes.com/2015/01/26/n...rsing-home-seizing-control-over-patients.html

By NINA BERNSTEINJAN. 25, 2015

Lillian Palermo tried to prepare for the worst possibilities of aging. An insurance executive with a Ph.D. in psychology and a love of ballroom dancing, she arranged for her power of attorney and health care proxy to go to her husband, Dino, eight years her junior, if she became incapacitated. And in her 80s, she did.

Mr. Palermo, who was the lead singer in a Midtown nightclub in the 1960s when her elegant tango first caught his eye, now regularly rolls his wife’s wheelchair to the piano at the Catholic nursing home in Manhattan where she ended up in 2010 as dementia, falls and surgical complications took their toll. He sings her favorite songs, feeds her home-cooked Italian food, and pays a private aide to be there when he cannot.

But one day last summer, after he disputed nursing home bills that had suddenly doubled Mrs. Palermo’s copays, and complained about inexperienced employees who dropped his wife on the floor, Mr. Palermo was shocked to find a six-page legal document waiting on her bed.

It was a guardianship petition filed by the nursing home, Mary Manning Walsh, asking the court to give a stranger full legal power over Mrs. Palermo, now 90, and complete control of her money.

Few people are aware that a nursing home can take such a step. Guardianship cases are difficult to gain access to and poorly tracked by New York State courts; cases are often closed from public view for confidentiality. But the Palermo case is no aberration. Interviews with veterans of the system and a review of guardianship court data conducted by researchers at Hunter College at the request of The New York Times show the practice has become routine, underscoring the growing power nursing homes wield over residents and families amid changes in the financing of long-term care.

In a random, anonymized sample of 700 guardianship cases filed in Manhattan over a decade, Hunter College researchers found more than 12 percent were brought by nursing homes. Some of these may have been prompted by family feuds, suspected embezzlement or just the absence of relatives to help secure Medicaid coverage. But lawyers and others versed in the guardianship process agree that nursing homes primarily use such petitions as a means of bill collection — a purpose never intended by the Legislature when it enacted the guardianship statute in 1993.

At least one judge has ruled that the tactic by nursing homes is an abuse of the law, but the petitions, even if they are ultimately unsuccessful, force families into costly legal ordeals.

“It’s a strategic move to intimidate,” said Ginalisa Monterroso, who handled patient Medicaid accounts at the Mary Manning Walsh Nursing Home until 2012, and is now chief executive of Medicaid Advisory Group, an elder care counseling business that was representing Mr. Palermo in his billing dispute. “Nursing homes do it just to bring money.”

“It’s so cruel,” she added. “Mr. Palermo loves his wife, he’s there every single day, and they just threw him to the courts.”
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Brett D. Nussbaum, a lawyer who represents Mary Manning Walsh and many other nursing homes, said Mr. Palermo’s devotion to his wife was irrelevant to the decision to seek a court-appointed guardian in July, when the billing dispute over his wife’s care reached a stalemate, with an outstanding balance approaching $68,000.

“The Palermo case is no different than any other nursing home bill that they had difficulty collecting,” Mr. Nussbaum said, estimating that he had brought 5,000 guardianship cases himself in 21 years of practice. “When you have families that do not cooperate and an incapacitated person, guardianship is a legitimate means to get the nursing home paid.”

Guardianship transfers a person’s legal rights to make some or all decisions to someone appointed by the court — usually a lawyer paid with the ward’s money. It is aimed at protecting people unable to manage their affairs because of incapacity, and who lack effective help without court action. Legally, it can supplant a power of attorney and a health care proxy.

Although it is a drastic measure, nursing home lawyers argue that using guardianship to secure payment for care is better than suing an incapacitated resident who cannot respond.

Mr. Palermo, 82, was devastated by the petition, brought in the name of Sister Sean William, the Carmelite nun who is the executive director of Mary Manning Walsh. “It’s like a hell,” he said last fall, speaking in the cadences of the southern Italian village where he grew up in poverty in a family of eight. “Never in my life I was sued for anything. I just want to take care of my wife.”

A court evaluator eventually reported that Mr. Palermo was the appropriate guardian, and questioned why the petition had been filed. But the matter still dragged on, and Mr. Palermo, who had promised to pay any arrears once Medicaid completed a recalculation of the bill, grew distraught as his expenses fighting the case reached $10,000.

In the end, Medicaid’s recalculation put his wife’s monthly copay at $4,558.54, almost $600 less than the nursing home had claimed, but still far more than the $2,642 Mr. Palermo had been paying under an earlier Medicaid calculation. As soon as the nursing home cashed his check for the outstanding balance, it withdrew the guardianship petition.

“They chose to use a strong-arm method, asking for somebody to be appointed to take over her funds, hoping for a rubber stamp to do their wishes,” said Elliott Polland, Mr. Palermo’s lawyer.

Many judges go along with such petitions, according to lawyers and others involved in the process. One judge who has not is Alexander W. Hunter Jr., a longtime State Supreme Court justice in the Bronx and Manhattan. In guardianship cases in 2006 and 2007, Justice Hunter ordered the nursing homes to bear the legal costs, ruling they had brought the petitions solely for the purpose of being paid and stating that this was not the Legislature’s intent when it enacted the statute, known as Article 81 of the Mental Hygiene Law.

Last year Justice Hunter did appoint a guardian in response to a petition by Hebrew Home for the Aged at Riverdale, but in his scathing 11-page decision, he directed the guardian to investigate and to consider referring the case for criminal prosecution of financial exploitation.

The decision describes a 94-year-old resident with a bank balance of $240,000 who had been unable to go home after rehabilitative treatment because of a fire in her co-op apartment; her only regular visitors were real estate agents who wanted her to sell. After Hebrew Home’s own doctor evaluated her as incapable of making financial decisions, the decision says, the nursing home collected a $50,000 check from her; it sued her when she refused to continue writing checks, then filed for guardianship.

“It would be an understatement to declare that this court is outraged by the behavior exhibited by the interested parties — parties who were supposed to protect the person, but who have all unabashedly demonstrated through their actions in connection with the person that they are only interested in getting paid,” he wrote.

Jennifer Cona, a lawyer for the nursing home, called the decision “grossly unfair to Hebrew Home,” but said she could not discuss details because the record was sealed.

Just look at how Hospital Association of NY is a large donor of Cuomo. So no ethics from our government and morals from the people who run...

"Religious" nursing homes doing such things are an affront to all that is good. Shame on them.

In this article: "More frequent petitioners for Guardianship than nursing homes (12.4 percent), are hospitals (16.1%), friends and family...

Many cases in which judges grant nursing homes’ guardianship petitions never come to light. But one that challenges the legal propriety of such petitions for bill collection is now pending before the Appellate Division of the State Supreme Court. Without explanation, that record, too, is sealed from public scrutiny.

“There is no transparency in the whole process,” said Alexandra Siskopoulos, a lawyer who represents a relative of the nursing home resident in the appellate case — a relative who had wanted to take the resident home. “Unfortunately, people’s eyes are not opened until it’s their family member, and at that point, it’s too late.”

Throughout the country, data is lacking on the most basic facts about guardianships, even how many there are. In New York State, with different rules in 62 counties and no centralized database, it has taken a team of researchers more than two years to collect information from a fraction of case files in 14 counties, said Jean Callahan, the director of the Brookdale Center on Healthy Aging at Hunter College.

Preliminary findings of the center’s study are not expected until later this year, but at the request of The Times, the researchers undertook a breakdown of the petitioners in a sample of the 3,302 guardianship cases filed in Manhattan from 2002 to 2012. More frequent petitioners than nursing homes (12.4 percent) were hospitals (16.1 percent), friends and family (25.3 percent) and Adult Protective Services (40.1 percent).

New York’s guardianship statute was part of a national movement to limit guardianships to the least restrictive alternatives necessary to prevent harm. A petition is supposed to be brought only by someone with the person’s welfare at heart, and guardianship is to be tailored to individual needs, taking into account the person’s wishes.

Instead, Ms. Callahan said, “it has become a system that’s very focused on finances.”

One afternoon, Mrs. Palermo dozed in her wheelchair while her husband described their careful preparations for old age, and the shock of discovering that papers drawn up by an elder law specialist were insufficient protection.

He recalled the fear and anger he felt when he first read the nursing home’s petition, on his bus ride back to a rent-stabilized apartment on East 36th Street filled with mementos of their happy marriage. They have no children. “Who better than me, the husband for 47 years, that she gave power of attorney?” he asked.

As his voice grew anguished, Mrs. Palermo began to moan and cry out incoherently. “Are you O.K., baby?” he asked, jumping up to embrace her. “Now, don’t do that. Come on, give me a hug.”

He soothed her in Italian, speaking of the polenta he had made for her that morning. He wheeled her to the dining room. Later, he would serenade her.

But in the night, again he could not sleep for worry. He fingered drafts of his own petitions, hand-lettered pages that he debated sending to nursing home administrators. One was addressed “To God and to whom it may concern.”

“I’m trapped in a web of people and lawyers that will exhaust my 50 years of sacrifices and savings,” he wrote. “Please, dear God, grant me strength and wisdom to take care of my wife.”
 

kayakpat

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People don't realize in the for profit medical care in this country, that when your medical expenses exceed the max amount of Medicare or Medicare, you will still have to pay so they take your estate to pay for your care. I found that out when my Father had a lingering illness before his death.
 

pat-tekker-cat

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People don't realize in the for profit medical care in this country, that when your medical expenses exceed the max amount of Medicare or Medicare, you will still have to pay so they take your estate to pay for your care. I found that out when my Father had a lingering illness before his death.
I've been trying to get an elderly relative to understand this....... to no avail. Sorry about your Father.
my moms' best friends, when they got older, they sold their farm and home to their daughter and son, at the bank, for $10 each. The son is raising his family on the farm, the daughter already had a home, but at least it protected their parents, that they would get benefits and nothing would be taken from them, or they would have to deal with these types of mess.

The decades I worked with ppl as a patient advocate/financial counselor/coder/biller, the horror stories I have heard, ppl being bullied, manipulated, disregarded, and in some cases, flat out lied to, Social Security dragging their feet, ppl crying cause no one would listen or help them. Ppl can be so cruel, when there is no reason, need, or call for it.
I had read that article Deep posted, as well as another article, talking about recognizing signs of elder financial abuse, fraud and the such. Hope it may help someone dealing with these matters.


http://finance.yahoo.com/news/growing-danger-elderly-americans-130010792.html

THE GROWING DANGER TO ELDERLY AMERICANS

The first signs of elder financial abuse are easy to miss. Maybe there's a new, overeager "best friend" who gives off a strange vibe. Or excessive secrecy around an online lover. Paranoia or anger when talking about money can be a tipoff, too. Don't count on discovering sudden large withdrawals from savings or checking accounts. By then, it'll probably be too late.


A perfect storm of factors make America's elderly the target of a fast-growing, insidious crime. Americans are living longer, and with the shift from pensions and toward retirement savings, they face a dizzying array of complex choices about what to do with their money. Making matters worse, as each year passes, their cognitive abilities tend to decline while the stakes of their money decisions get higher. It's a recipe for disaster. Criminals always steal from where the money is, and scam artists always flock to wherever financial confusion can be found.

There's no central agency to compile elder fraud data, but the most oft-cited study, conducted by insurer MetLife, estimates that older Americans are cheated out of $2.9 billion annually. In another study, one in 20 older adults report being victimized by "financial mistreatment" at some point in the recent past. The crimes are often profound. The average loss is between $100,000 to $150,000 – often, an entire lifetime of savings. And unlike the plight of swindled youth, who can work to rebuild their savings, there is no way for an elderly person to recover the lost money.

Americans are living longer – the fastest-growing segment of the population is the over-85 set — but aging still takes its toll. Decline in financial decision-making skills is a fact of life. About half the population between 80 and 89 years old either has dementia or a diagnosed cognitive impairment.

But the problems may begin much sooner than many realize. In a landmark paper called "The Age of Reason" authors Xavier Gabaix (NYU) and David Laibson (Harvard) found that the peak age for financial decision-making prowess — when adults enjoy the best blend of experience and mental acuity – is 53. After that age, financial literacy rates decline about 1% each year, according to later study.

Variations on a Scam

There's a wide range of crimes older Americans face. Some are brazen crimes, such as the sweetheart scam, in which a lonely elderly person is seduced by a fake online lover into sending thousands of dollars to a criminal. Or the grandparent scam, when a criminal contacts an elderly person – often through social media – and claims a grandchild is in trouble overseas and needs money wired to some remote location immediately.

Perhaps more insidious are crimes — or deceptions — committed by family, friends or trusted advisors. In Georgia, a neighbor acting as a caregiver and her husband were indicted in 2012 for allegedly stealing $182,000 from an 80-year-old Air Force veteran suffering from dementia. The couple allegedly withdrew money from the victim's account and used it to pay for improvements on their own home, and to buy a boat.

Elder fraud can also involve professional financial advice ranging from ill-conceived to criminal. Stories of elderly Americans being placed into too-costly annuities or bad insurance products abound. Here's one: Ruth Alice Roach–Worak was in her 80s when Texas insurance agent John F. Langford talked her into buying $950,000 in phony "private annuities." He is serving a 15-year prison sentence; by the time authorities seized his assets, however, they could only return $35,765 to Roach-Worak.


The Biggest Challenge

While annuities have a bad reputation, they can be appropriate for certain investors. But they are usually the most complicated product an investing consumer will face during their lifetime, and many are forced to make decisions about them when they are least able to make good choices.

To make matters worse, research released this month confirms what those who would cheat older Americans often know implicitly: the elderly are often the last to know their mental capacity is slipping. Experts at the Center for Retirement Research at Boston College conducted an extensive study of elderly who were slowly losing their financial decision-making skills and found a common problem: overconfidence. Like an aging driver loathe to surrender a license, the study found many older Americans fail to ask for help with money because they don't realize they need it.

"Participants who suffer cognitive decline experience a reduction in their financial literacy but no change in their confidence in managing their money," the study found.

That leaves children or other family members in the unenviable position of trying to wrest financial control from aging relatives who don't want the help.

Even if you don't have an older relative, this is your problem. There is a social cost: A report by the Utah Division of Aging and Adult Services in 2011 found that about one in 10 financial abuse victims will turn to Medicaid as a direct result of losing their own money to fraud.

"(These are) funds that could have been used to pay for basic needs such as housing, food, and medical care. Unfortunately, no one is immune to abuse, neglect, and exploitation," says the U.S. Department of Health and Human Services.

The problem has the potential to become more prevalent. In 2010, there were 5.8 million people aged 85 or older. By 2050, it is projected that there will be 19 million people aged 85 or older. By then, people age 65 and older are expected to comprise 20% of the total U.S. population.

Signs of Elder Abuse

The National Committee for the Prevention of Elder Abuse offers this detailed list of signs that someone might be suffering from elder abuse.

"Some of the indicators listed below can be explained by other causes or factors and no single indicator can be taken as conclusive proof," the agency cautions. "Rather, one should look for patterns or clusters of indicators that suggest a problem."
•Unpaid bills, eviction notices or notices to discontinue utilities
•Withdrawals from bank accounts or transfers between accounts that the older person cannot explain
•Bank statements and canceled checks no longer come to the home
•New "best friends"
•Legal documents, such as powers of attorney, which the older person didn't understand at the time he or she signed them
•Unusual activity in the older person's bank accounts including large, unexplained withdrawals, frequent transfers between accounts, or ATM withdrawals
•The care of the elder is not commensurate with the size of his/her estate
•A caregiver expresses excessive interest in the amount of money being spent on the older person
•Belongings or property are missing
•Suspicious signatures on checks or other documents
•Absence of documentation about financial arrangements
•Implausible explanations given about the elderly person's finances by the elder or the caregiver
•The elder is unaware of or does not understand financial arrangements that have been made for him or her.
 

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against the wind

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Very sad situation. I'm familiar with Mary Manning Walsh Home. I grew up in NYC and was a resident until 2016. Friends of mine, who were members of the Knights of Columbus, would volunteer their time to help with the elderly patients. They often spoke of the excellent care and attention the patients received. Of cause they never saw the administrative end of the Home's business.
Money is power and it is sad to see innocent people get bullied or intimidated by lawyers and administrators. In the Palermo case and other cases like it,, the costs of hiring a lawyer, and all associated legal costs, should be reimbursed. I would try to establish a precedent that would discourage Administrators from using intimidation tactics. The costs that are in place for the patient during the legal dispute, should be forfeited by the Homes, Hospitals, or Care Givers, etc., that sought guardianship as a method of getting bills paid. The administration would not be so quick to hire a lawyer if they knew that they could lose all healthcare payments from the patient plus the legal costs the patient is required to pay for a defense lawyer. These dispute cases can go on for years and the administrators of health care would lose the steady flow of payments and have to pay the patients legal costs. It might make them think twice before trying to strip the patients of their life savings.
 

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