Cambridge Realty Capital reports closing on a $4.5 Million HUD Lean loan for the Bethany Healthcare and Rehabilitation Center, a 90-bed skilled nursing home facility in DeKalb, Ill.

Cambridge Chairman Jeffrey A. Davis said the fully-amortized, 34-year term loan was arranged for the property’s owner, an Illinois corporation, using the HUD Section 232 pursuant to Section 223(a)(7) refinance program. The loan was underwritten by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans. The interest rate was not disclosed.

Privately owned since its founding in 1983 as a real estate investment banker specializing in commercial real estate properties, Cambridge today has three distinctive business units: FHA-insured HUD loans, conventional financing, and investments and acquisitions. The company is one of the nation’s leading senior housing and healthcare debt and equity capital providers, with more than 400 closed transactions totaling more than $4.5 billion since the early 1990’s, when the firm began its specialization in providing senior housing capital.

Cambridge has consistently ranked among the country’s top five FHA-insured HUD lenders (now HUD Lean) over the last 15 years and offers an array of conventional lending options, including permanent construction and interim loans on either a floating or variable rate basis. The company’s principal investment strategy includes direct property acquisitions and joint ventures, sale/leasebacks, conventional and mezzanine debt financing, and the acquisition of distressed debt. The company has acquired 16 facilities totaling approximately $60,000,000.


The Boston Globe reported that a federal bankruptcy judge has frozen the assets of a trust benefiting the children of Antonio Giordano, a Rhode Island nursing home executive jailed for conspiracy and embezzlement.  Bankruptcy trustee Charles Pisaturo Jr. argued that the assets should be turned over to Giordano’s bankruptcy estate because he was the beneficial owner at the time he filed for Chapter 7 bankruptcy protection. Giordano filed for bankruptcy on Oct. 13, claiming he cannot pay nearly $800,000 he owes to the Internal Revenue Service after admitting in 2006 to taking money from three nursing homes as they defaulted on federally backed mortgages or operated in the red.


Alissa Alvarez works with  She recently published an article that we thought might be of interest to our readers.  The article is entitled, “10 Big Companies That Promote Employee Meditation".

"Work can be a stressful place, and with companies trying to keep an eye on the bottom line while simultaneously improving productivity, many workers may find themselves with more responsibilities than ever before. While there is no way to totally eliminate stress from the workplace, some companies are doing what they can to help employees relax, and many, like those that we feature here, are doing that through on-site meditation.

Meditation has been shown to produce a wide range of mental benefits when practiced on a daily basis. Studies have shown that it can actually change how the brain processes information and manages the effects of stress, depression, and anxiety. Those who practice meditation, research has demonstrated, are happier and calmer than their counterparts who don’t, so it’s no surprise that many high-stress businesses are catching on and making meditation a part of their corporate mission. Read on to learn about some of the companies that are leading the way in promoting on-the-job meditation."

The Gainesville Sun reported another verdict against Trans Health Management–this one for $900 million.  Collecting the judgment is the difficult part.  A jury’s civil judgment is the third since 2010 worth more than $100 million that law firm Wilkes & McHugh has won against Delaware corporations that owned or operated 220 nursing homes nationwide — Trans Health Management and its parent Trans Healthcare.   Trans Health Management Inc., meanwhile, has since folded, and its parent, Trans Healthcare Inc., is in receivership in Maryland. Trans Healthcare’s receivership stopped defending Webb’s case in 2010 after years of delay and obstruction.  Because the defense refused to appear, the jury heard unrebutted testimony about what Webb suffered between 2001 and 2005 — the last part of his 10-year stay at University Place.

"The 25-page complaint against the company details how, after entering the nursing home following a stroke, Webb was paralyzed and needed 24-hour care. As the company charged with taking care of him doubled in size, he suffered multiple pressure sores to his right foot, right calf, right heel, coccyx and left buttock, the complaint stated. He suffered multiple infections, septicemia and unexplained weight loss, the complaint said. All the while, the corporations were draining money out of the nursing homes, instead of providing decent care, the complaint said."

"Defendants … acted and failed to act in … their duties to Joseph Webb … for their own gain, to increase their net worth and consolidated revenues, in direct and substantial breach of their duties," the complaint reads   "As a result of these companies’ care, the Rev. Joseph Webb suffered pressure sores and infections that required surgeries, including an above-the-knee amputation of his right leg, attorney Bennie Lazzara Jr. told the jury."

"The family was grateful to have a chance to have the story told for Rev. Webb," Lazzara said. "The main reason the family brought the suit was so that this wouldn’t happen to anyone else."

"Wilkes & McHugh, the law firm for Webb’s family, has yet to collect on either the $114 million judgment a Polk County jury awarded in 2010 in the death of a nursing home patient or a $200 million verdict a Pinellas County jury returned last month after a woman in a wheelchair toppled to her death. Both were cases against this same set of corporations, which at their peak generated $1 billion in revenues, according to Wilkes & McHugh."

"We believe that the assets of these companies have been transferred to other companies," he said. "It’s our intention to follow this company until we find out where the assets are and then we’re going to collect them."


The Tampa Bay Times reported that for the third time in two years, the law firm of Wilkes & McHugh has won a nursing home verdict against THI entities, the predecessor of Fundamental Long Term Care Holdings.  In 2010, a Polk County jury awarded $114 million in a nursing home resident’s death. Then, a Pinellas County jury awarded $200 million after a woman in a wheelchair toppled to her death in a stairwell. Now, a Gainesville jury handed down a $900 million verdict, including $700 million in punitive damages — half again more than Wilkes & McHugh had even asked for.

"What is drawing so much outrage from juries is unrebutted testimony that the controlling interests behind these companies were hedge funds and banks that allegedly siphoned money out of nursing home operations by cutting staff, loading up on debt, letting care decline and shuffling funds between corporations to buffer them from lawsuits."

"We are showing the sums of money being looted,” James Wilkes said. "We think total profits were about $2 billion that was sucked out of the system.”

"The Trans Health companies do not appear to have much in the way of assets. But Wilkes & McHugh is trying to collect from a few hedge funds and financial institutions such as GE Capital Corp., saying they colluded to pull money out of nursing home operations and should now be forced to return it."


Dechert’s website had the following about their recent win in a lawsuit against Fundamental:

Dechert attorneys obtained a favorable judgment issued on Feb. 7 by the First Department of the New York Appellate Division in Fundamental Long Term Care Holdings LLC v. Cammeby’s Funding, LLC, No. 650332-2011. Dechert partner Steven A. Engel argued the case on Jan. 17 in support of a judgment recognizing the rights of defendant Cammeby Funding, LLC to a one-third interest in Fundamental Long Term Care, a national nursing-home company.. In the court’s opinion it stated: “regardless of which document was executed first, the motion court correctly found unambiguous the parties’ option agreement entitling defendant Cammeby’s to acquire units of the LLC for $1,000 without the need for any capital contribution. We note that the integration clause in the option agreement bars parol evidence of the parties’ intent and of any other agreements or understandings. Under the circumstances, we reject plaintiffs’ contention that defendants obtained an improper windfall.”

“We’re pleased that the First Department recognized, as the trial court did, that the plain language of the option agreement must govern the parties’ rights," stated Mr. Engel.

In addition to Mr. Engel, Dechert chairman Andrew J. Levander was on the team representing the defendants, Cammeby’s Funding, LLC and Quality Healthcare Services.

The Court’s decision may be found here.


As healthcare organizations receive increasing pressure to lower infection rates in patients, OSHA is investigating ways to keep healthcare workers safe from infectious exposures. The public is aware of the numerous studies last year that confirmed the presence of high amounts of bacteria on healthcare worker uniforms.  A new study addresses these issues appears in the March, 2012 issue of the Journal Infection Control and Hospital Epidemiology.

According to the research, Vestex® fluid barrier / antimicrobial scrubs had “a statistically significant, 4-7 log Colony forming unit (CFU) decrease in the overall mean log CFU MRSA count compared to normal scrubs.” This means there was greater than a 99.99% reduction in the amount of the superbug MRSA on the Vestex uniforms, as compared to regular scrub uniforms.


The ability of Vestex®to reduce MRSA or other microbial bioburden on garments has not been shown to correlate with any clinical event or to be able to reduce patient infections. Clinical studies to evaluate reduction in infection have not been performed. The antimicrobial agent used in Vestex® is EPA registered to guard against the degradation of the fabric from microorganisms and to retard the growth and action of odor causing bacteria.



Kansas City’s KCTV5 reported the lawsuit filed about the alleged crime and cover-up at Brandon Woods at Alvamar.  Predictably, Defendants say there is no merit to the lawsuit, but the allegations in a 32-page court document are detailed and disturbing.  The suit was filed by the family of Jean Allen who was living at Brandon Woods at Alvamar in hospice care with dementia and almost entirely immobile.

The report of a possible sexual assault by a nursing aide was upsetting to the family, but the outrage stems from how the facility responsible for Allen’s care handled that report.

"The lawsuit against the owners and staff says the daughter of Allen’s roommate called the head of nursing on Oct. 21, 2010.  "The telephone message starts out, ‘Something awful may have happened,’" said Skepnek.  Skepnek says the head of nursing, Sharon Mulqueen, did not contact Allen’s family, did not suspend the nursing aide, did not call police and did not send Allen to the hospital. The next day, he says, Mulqueen suspended the aide and sent Allen to Lawrence Memorial Hospital – not for a sexual assault exam, but for a routine Medicare exam."

The nursing home staff refused to file a police report until hospital staff threatened to do so themselves.  In the interim, the nursing home staff had bathed Allen and washed her clothes, destroying whatever DNA evidence might have been available.  As for Allen’s exam, the suit says a specialized sexual assault nurse reported cuts and scrapes that left her with "no doubt" that Allen had been sexually abused.


The Witchita Eage reported that the Kansas legislature will attempt to pass legislation requiring nursing homes to notify residents if a convcited sexual predator is admitted.  Opponents fear that HB 2583 would lead nursing homes to unlawfully turn offenders away, leaving aging offenders with no options.   Laws that push offenders away may have played a role in how this issue made headlines in Kansas. 

"An inspection of Wichita Nursing Center on South Hillside last August unearthed more than 50 violations, leading the Kansas Department on Aging to shut the home down. In the process, regulators also learned seven sex offenders lived there, a finding that surprised some state officials and spurred a discussion about how to notify people and provide safe residences.
An analysis by The Eagle later found 19 sex offenders living in nursing homes statewide."

"The proposed bill requires anyone on the Kansas Offender Registration list to tell nursing home owners and local law enforcement agencies that they’re on the list and planning to move in.
The registration list encompasses a wide range of crimes, including selling drugs, patronizing a prostitute, rape and murder. Less-severe crimes typically put offenders on the list for shorter periods of time, ranging from 15 years for buying sex to life for things like rape and kidnapping. "

Since 2004, 14 states have enacted laws to notify people, increase monitoring or segregate sex offenders.  Few nursing homes have the staffing, training and security needed to deal with offenders.  Felons have been in nursing homes for years.  Now there’s a list of offenders. Some may be violent people coming out of prison, others may have been in the public for 25 years without an offense.


A Live 5 News investigation has uncovered that convicted, registered sex offenders are living in nursing homes in the Tri-County area. A search of South Carolina’s sex offender registry revealed that at least three sex offenders live in nursing homes in North Charleston and Goose Creek.

Wes Bledsoe, founder of A Perfect Cause, a nursing home watchdog group, says this is just the tip of the iceberg.   Bledsoe says A Perfect Cause has documented over 2,000 sex offenders listed as residents in nursing homes. The group has also documented more than 80 cases of assaults, rapes and murders by sex offenders while living in long term care facilities.

"When you put predators in with the prey, somebody’s gonna get bit," Bledsoe said via satellite from Oklahoma City. "We have violent and sex offenders residing as residents in nursing homes and other long term care facilities across the nation."

"Who would think their loved one would be living under the same roof with no locked door between them and a violent sexual offender, some of which just came out of prison earlier that day or the day before?" Bledsoe asked.

There is no state law that requires notifying residents at nursing homes or their families when a sex offender moves in.  The only way to discover if a sex offender is living in a nursing home is by going on SC’s sex offender registry, typing in the address of the facility and seeing if an offender’s name and photo pops up.