"State seizes two care homes"
CEO faces elder abuse charges, files for bankruptcy protection
By Christina Lucarotti-Stubler, Record Searchlight
April 12, 2006
The CEO of two Shasta County nursing homes who faces criminal elder abuse charges has filed bankruptcy for his corporation following a move by the state to take over management of the businesses.
Robert Roy, 64, of Millville, who was arrested in December, owns Western Care Management Corp., which does business as Rehab Specialties Inn in Anderson and Applewood Inn in Redding.
Together, the 125-bed and 143-bed nursing homes have about 180 elderly patients and 180 employees, according to documents filed with the U.S. Bankruptcy Court in Sacramento.
Management of both facilities has been taken over by the California Department of Health Services, which recently appointed Ermel Don Doyle Jr. of Sycamore Asset Management as the temporary manager, documents show.
"We're confident patients are in good hands," Department of Health Services spokeswoman Patti Roberts said of Doyle's placement.
Roberts said both nursing homes remain under investigation. She said there is no projection of how long the temporary management might continue.
Roy's arrest came after an investigation of Rehab Specialties revealed that persistent understaffing had put patients at a significant risk of injury and possibly death, state officials said at the time.
It is unclear how much money Western Care Management Corp. owes to the 94 creditors listed in the bankruptcy documents.
According to the documents, an IRS tax lien was filed against corporation in November 2003 in the amount of $226,538. Two judgment liens also have been filed, one for an unknown amount, the other for $104,584.
The trustee appointed to oversee the bankruptcy believes the businesses can be sold together if they are kept in operation, the documents said.
Roy is scheduled to appear Monday in Shasta County Superior Court for a settlement conference regarding the misdemeanor criminal charges.
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