Getting independent legal review is good advice. I'm not a lawyer, but here's my take on why you should consult one. Your contract was with the original nonprofit. Typically, the assets are sold and used to satisfy the debt of the seller. Any surplus must be used for charitable purposes. Since you and other residents are unsecured creditors, and your contracts represent an unfulfilled obligation of the selling organization, the specifics of how the transaction was structured, your state's regulations, and the case law surrounding similar situations all bear upon what rights you may have going forward.
Mergers and acquisitions are a way for investors to gain control of undervalued assets. Once in control, the investors seek to restore and enhance the value. If the sale was motivated by insolvency, the new owner will move to reduce costs and improve revenue. They may separate assets that were bundled and sell some off. It the extreme, they may seek to convert a lifecare property into a simple, unregulated, real estate investment.
Competent legal advice from someone who knows elder law matters is very important.
I asked ChatGPT for suggestions. Here is the result:
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The recent acquisition of Denton Village in Denton, TX, by a for-profit entity raises important considerations for the rights and well-being of its elderly residents. Several governmental agencies and resources are dedicated to safeguarding these rights:
1. Texas Health and Human Services Commission (HHSC): HHSC oversees the regulation of long-term care facilities in Texas. They provide a hearing process for residents of Medicaid-certified nursing homes who wish to contest discharges or transfers. Residents can file complaints or seek assistance regarding their rights and facility operations. Protect Their Money Texas+3AAACT+3MarketWatch+3Texas Attorney General+1MarketWatch+1
2. Texas Adult Protective Services (APS): APS investigates reports of abuse, neglect, or exploitation of elderly individuals living in the community. They offer services to prevent further harm and ensure the safety of vulnerable adults. Texas Family Services+1Protect Their Money Texas+1
3. Long-Term Care Ombudsman Program: This program advocates for residents of long-term care facilities, addressing concerns about quality of life and rights. Ombudsmen assist in resolving complaints and provide information on resident rights. Protect Their Money Texas+2AAACT+2MarketWatch+2
4. Texas Attorney General's Office – Medicaid Fraud Control Unit: This unit investigates and prosecutes abuse, neglect, or exploitation of residents in Medicaid-funded facilities. They also handle cases of Medicaid fraud within such facilities. Protect Their Money Texas+1Texas Family Services+1
Given the complexities arising from the transition to a for-profit ownership and existing contracts with the previous non-profit entity, consulting with an elder law attorney is advisable. These legal professionals specialize in issues affecting seniors, including contract disputes, estate planning, and elder rights.
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Artificial Intelligence makes mistakes and may omit important information. Verify. I hope you find this helpful in getting started, but don't take it as definitive or complete.
Richmond Shreve
NaCCRA Board Member
Forum Moderator