Michigan Attorney General Cox Announces Corporate Integrity Agreement with Metron Nursing Home Chain

24 May 2006

Attorney General Mike Cox announced today that Metron Integrated Health Systems has agreed to enter into a Corporate Integrity Agreement designed to improve the clinical performance of the Metron facilities.

"Ensuring the proper care and safety of the residents of Metron facilities was and is priority number one," said Cox. "The agreement will ensure just that. Metron's nine facilities will be closely monitored to make certain that no patient suffers the way Sarah Comer did."

The Attorney General filed a civil complaint against Metron on March 8, 2006 (Cox v Miko Enterprises Inc., d/b/a Metron Integrated Health Systems, et al, Ingham County Circuit Court Case No. 06-314-CZ [Judge Paula Manderfield]), alleging that since 2003, Metron's Allegan, Big Rapids, and Kalamazoo facilities provided inadequate care to their residents and failed to comply with applicable state and federal law or the policies, procedures, rules, and regulations of the Medicaid Program. The civil action followed criminal charges the Attorney General brought against eight employees of the Metron of Big Rapids nursing home stemming from the death of oxygen-dependant resident Sarah Comer in January 2005.

The Corporate Integrity Agreement will be the basis for settling the civil action. Highlights of the Agreement are:

* Monitor with Broad Authority. A mutually agreed upon Monitor will be appointed within 60 days of executing the Agreement to oversee clinical aspects of operations at all nine of Metron's nursing homes and make changes necessary to bring Metron into compliance with state and federal law, and Medicaid policies, procedures, rules, and regulations. All costs of the Monitor will be borne by Metron, but the Attorney General retains authority to terminate the Monitor for cause. The Monitor will have broad authority, including authority to:

-- Determine whether Metron is complying with its obligations to properly staff its facilities, train its entire staff, and implement appropriate policies and procedures.

-- Impose liquidated damages of $2,500 per day for a material breach of the Agreement and $1,500 per day for failure to report significant events to the Monitor.

* Metron's Obligations. The many undertakings to which Metron has agreed include:

-- Metron must fully comply with all of the requirements of state and federal law, including, but not limited to, the Medicaid False Claims Act and the Michigan Public Health Code.

-- If there is an event at one of Metron's facilities that could be a significant violation of state or federal requirements, Metron must notify the Monitor within one business day of discovering that the event occurred. Within 10 days of the event, Metron must submit to the Monitor and the Attorney General a written report of the event. Reporting the event does not preclude the Attorney General or any other state or federal agency from taking any appropriate action related to the event, including prosecution or the imposition of regulatory fines.

-- Check the criminal history reports of all staff and potential staff, including temporary and pool staff, in compliance with Michigan's Criminal Background Check Statute.

* Veto Power Over Sales and Acquisitions. Should Metron wish to sell one or more of its nursing homes, the sale must first be approved by the Attorney General. If a sale were proposed, the Attorney General is likely to consider the background and ability of the purchaser to properly operate the homes. The sale of a facility to a bona fide purchaser approved by the Attorney General would cause the Corporate Integrity Agreement to terminate at that facility and the new purchaser would have a fresh start at operating the facility. Also, if Metron intends to acquire additional nursing homes during the term of the Agreement, it must first obtain the Attorney General's acquiescence.

* Duration of Agreement. The Agreement will be in effect for two years from the date a Monitor is appointed, subject to extensions for periods of material breach. The Agreement could end before two years if Metron sold all of its facilities.

In addition, a Settlement Agreement to be entered with the Court requires that Metron pay the Attorney General $78,015 within 10 days to settle the Medicaid restitution and penalty claims set forth in the civil complaint.

Source: prnewswire

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