CAHF Responds to State Audit on Related Party Transactions

For Immediate Release
May 4, 2018

Sacramento - The California Association of Health Facilities issued the following statement regarding a May 2, 2018 audit of skilled nursing facilities.  

A state audit report entitled "Skilled Nursing Facilities - Absent Effective State Oversight, Substandard Quality of Care has Continued," leaves out key facts. 

The audit, which was directed to review related party transactions, examined three of the state’s largest providers of skilled nursing care. 

It found that all of the companies properly report related-party transactions, do not make profits from Medi-Cal payments and are not adequately
reimbursed for providing care to Medi-Cal beneficiaries.

Unfortunately, the state auditor broadened the scope of the audit to examine the delivery of quality care without provider input or utilizing multiple data sources.

The audit summary of deficiencies is only part of the patient care story.  For example, the audit states that deficiencies related to substandard care increased from 445 to 585 over a nine year period between 2006 and 2015.  It further stated that deficiencies that were likely to cause serious harm or death rose from 46 to 62 over the same period.

For context, these deficiencies represent less than one percent of the 375,000 patients who are served each year by the state's skilled nursing providers.  While any deficiency is a serious matter, implying that substandard care continues is an overreach.

Buried in the report is a statement that California ranked in the top 10 best states for such indicators as total nurse staffing hours per patient day and that overall, the state had a lower percentage of short term residents with pressure ulcers and falls with major injuries. This is inconsistent with the conclusion that care continues to be substandard.

The report failed to address the totality of California’s national standing as a leader in the delivery of quality care.
2018 Quality Report

California skilled nursing providers are ranked No. 1, 2 or three in the nation in eight of 24 quality categories as measured by the federal government. Five Year Quality Snapshot

California providers do a better job than 46 other states in reducing the use of antipsychotic medication

CAHF’s Music & Memory program is delivering personalized music to calm and comfort 4,500 residents with dementia and other cognitive disorders, helping to reduce the need for medication in 300 facilities. 

CAHF’s Dietary Services Project is providing employee education and training to improve the safety and quality of food service in every nursing facility in the state.

For more information contact: 
Deborah Pacyna
Public Affairs Director