AG negotiates to include Harborview in receivership of Pillsbury nursing home group

Pillsbury Manor residence on Allen Road in South Burlington. VBM photo.

Vermont Business Magazine The Attorney General’s Office (AGO), on behalf of the Vermont Department of Disabilities, Aging and Independent Living (DAIL), has entered into a stipulation that will allow temporary receivership of three residential care homes to include Harborview, the fourth facility owned by East Lake Capital Management (ELCM) and Andrew White. The agreement also continues the merits hearing originally scheduled for today, allowing White to consult with local counsel. Last week, the Washington Superior Court appointed a temporary receiver of Allenwood at Pillsbury Manor in South Burlington, Homestead at Pillsbury in St Albans, and Pillsbury Manor South in South Burlington, the three other facilities held by ELCM in Vermont.

With this new agreement between the parties, the temporary receiver, Douglas Wolinsky, Esq, will take over management of Harborview. Harborview was not included in the State’s original filing because it is not regulated as a residential care home by the licensing agency, DAIL.

“I am very pleased that the receiver now has the opportunity to get Harborview back on track. Those residents deserve the same peace of mind and security as the residents of the Pillsbury homes,” said Attorney General TJ Donovan.

“During our meetings with residents, family members and staff on Thursday and Friday, we heard major concerns about Harborview not being included in the temporary receivership. We are extremely pleased to be able to resolve that issue for residents and their family members through this agreement,” said Monica Hutt, Commissioner at DAIL.

Including Harborview and the Pillsbury homes, there are over 200 residents at the four facilities. Meetings with residents and staff at Harborview will take place today. The purpose of these meetings is to discuss the specifics of receivership and expectations going forward.

A hearing to argue for appointment of a permanent receiver has been rescheduled for Monday, December 10th and Tuesday, December 11th.

Douglas Wolinsky, Esq, Primmer Piper Eggleston & Cramer PC.

Wolinsky is a shareholder, Director and Senior Vice President at Primmer Piper Eggleston & Cramer PC in Burlington.

According to the Primmer website, Wolinsky offers clients "guidance and concise plans of action in the areas of banking, bankruptcy, creditors’ rights and the protection of debtors, intellectual property, and general corporate law. Doug’s practical approach to achieving client goals assists them in effective resolution of complex matters. Doug serves as a Chapter 7 Trustee in both the District of Vermont and the Northern District of New York."

BACKGROUND

On November 9, the attorney general issued a press release announcing that the Washington County Superior Court has assigned a temporary receiver to take over management of three Vermont residential care homes. The temporary receiver was put in place after the Vermont Attorney General’s Office (AGO) filed an action for the appointment of a receiver with the Court on behalf of the Vermont Department of Disabilities, Aging and Independent Living (DAIL). The residential care homes are located in South Burlington and St Albans.

Both AGO and DAIL, as well as the Vermont Long Term Care Ombudsman, have received complaints from staff, residents, and their family members over the past several months regarding the business practices of these homes. Attempts at correcting the practices through the standard regulatory process were unsuccessful.

Complaints received involved the homes’ failure to deposit residents’ rent checks or to return deposits, concerns about adequate staffing, and food insecurity. During an unannounced inspection this week, it became clear that the need to intervene was urgent, prompting the joint motion to appoint a receiver. The State and the temporary receiver are now working to ensure adequate service delivery to protect the health and safety of residents.

The residential care homes involved are Allenwood at Pillsbury Manor in South Burlington, Homestead at Pillsbury in St Albans, and Pillsbury Manor South in South Burlington. All are owned by East Lake Capital Management and Andrew White. Across the three properties there are 102 residents receiving residential care home level of care and another 69 living independently. Harborview, an independent living facility operated by the same company, is not covered under this court action.

The temporary receiver put in place, Douglas Wolinsky, Esq., has experience managing estates and is a member of Turnaround Management Association. He will work to stabilize the business practices at all three homes and limit interruptions to residents and their families. The State expects that the homes will continue to provide services to our community for the foreseeable future. All regulatory rights and requirements will remain in place while the receiver performs this function. The receiver will be in place temporarily until the homes are satisfactorily stabilized.

“I want staff, residents, and their families to know that the State has confidence in the receiver promptly getting management of these homes back on track,” said Attorney General T.J. Donovan.

Monica Hutt, Commissioner at the Department of Disabilities, Aging and Independent Living stated, “Our highest priority is the health and safety of residents in these facilities. Stabilizing the operations of this organization is a way to ensure that health and safety.”

Meetings with residents and staff to discuss the specifics of receivership and expectations going forward took place yesterday at all three facilities and more meetings are scheduled for today.

A copy of the Court’s order, by Judge Mary Miles Teachout, can be found here. A hearing on the merits and to argue for appointment of a permanent receiver is scheduled for Wednesday, November 14.

The temporary receiver is Douglas Wolinsky, Esq.