A lawsuit filed by CANHR against the Department of Public Health and Country Villa Service Corp, challenges the state-approved practice of allowing Country Villa nursing homes to contract out their operations to another entity owned by Country Villa.
The “management’ company then receives a percentage of revenues (often 5%) from the facilities they operate. Besides CANHR, the plaintiffs include Gail Dawson, an individual. CANHR and Ms. Dawson are represented by Russell Balisok and Silvo Nardoni of Glendale. The lawsuit asks for declaratory relief invalidating state statutes as in conflict with federal law; for an order requiring disgorgement of all management fees paid; and for a permanent injunction. For a copy of the lawsuit click our link.