Ed Moore says there’s no hidden agenda behind his challenge of the proposed sale of Pima County’s nursing home.
He says something just doesn’t feel right.
Moore, who served three terms as a Pima County supervisor until 1997, says he has a “concern for Pima County taxpayers,” and after studying documents and researching the buyer, he says he questions the legalities of the bid process.
On Monday, Sept. 12, Moore filed a letter of complaint with the Pima County Attorney’s Office, asking County Attorney Barbara LaWall to take a closer look at the request for proposals and bid process to sell the 156-bed Posada del Sol facility, located south of Grant Road on Craycroft Road.
Moore questions why Pima County accepted the bid offered by Hunter Properties Investment for $7.8 million, and not the highest bid, from Mavin Enterprises, for $9.1 million.
Moore’s complaint also questions the county’s hiring of a Chicago real estate agency to sell the nursing home, while not issuing a request for proposals or doing any local advertising; he believes this is in violation of state law.
There was also an odd change made in the bidding process, Moore says: On July 18, four prospective bidders were asked to provide $500,000 with the bid, rather than the $250,000 that was first requested.
“(This) is not standard in the industry,” Moore wrote in his letter to LaWall.
Moore says he also plans to take the case to the state Attorney General’s Office and seek further legal remedies.
Tucson attorney Michael Rusing also sent a letter to LaWall’s office, on Tuesday, Sept. 13, on behalf of Mavin Enterprises, the highest bidder.He echoed Moore’s concerns and requested a full investigation “of these irregularities.”
The purchase agreement between Pima County and Hunter first went in front of the Board of Supervisors on Aug. 2—but the vote was delayed because of concerns about Hunter Properties’ alleged history of nursing-home violations at its facilities.
The concerns focus on Eric Rothner, the Hunter Properties manager, who is mentioned extensively in newspaper reports and legal blogs regarding violations and abuse allegations at nursing-home facilities that he owns or co-owns in Illinois and Indiana.
The county then sent Pat Wilson, Posada del Sol’s administrator, and Amy Fish, special staff assistant for the office of the assistant county administrator for health policy, to Nebraska for site visits of two properties. This included Lancaster Rehabilitation Center, a facility that Hunter’s LLC bid on last year from Lancaster County.
They returned to Tucson with positive reviews, ending their report with: “Both of us would be comfortable with a family member residing in either of these facilities … (and) we recommend that the board proceed with approval of the purchase agreement.”
On Aug. 15, the Pima County Board of Supervisors voted 4-1 to approve the purchase agreement with Hunter.
Supervisor Richard Elías voted against the deal; he later told the Weekly that he remains concerned about the allegations at nursing homes affiliated with Hunter Properties Investment.
“I didn’t feel comfortable with Avi (Rothner’s) answers to my questions,” Elías says. “He was nice enough, but some things he said left me more concerned.”
William Rothner, also known as Avi, is the name submitted with the bid for Posada del Sol. According to an LLC search for Hunter Properties at the Illinois Secretary of State’s website, Eric Rothner—William’s father—is the owner.
Elías says that William “Avi” Rothner asked not to be judged based on past issues that involved his father—issues that Elías says the son claimed are part of a “political conspiracy.”
“That wasn’t a really good answer,” Elías says.
Keeping the current employees at Posada del Sol is also a concern for Elías. The purchase agreement with the county stipulates that to “ensure continuity of care,” current employees are to be guaranteed offers of employment similar in pay and benefits to what they receive under Pima County.
“He was not as definitive about taking all our employees as he should have been,” Elías says. “He was a nice enough gentleman, and he wasn’t combative, but his answers didn’t make me feel comfortable.”
According to Pima County Administrator Chuck Huckelberry, sales decisions in matters like this should not just be based on bid amounts; other criteria are also important, like assuring that patients will be well-cared-for and that the 300-plus staff members will continue to be employed. It’s also important that those who bid show that they can obtain the needed licenses and meet state and federal criteria.
Mavin Enterprises, Huckelberry says, was unresponsive when the county’s search committee asked specific and detailed questions—for example, about what skilled nursing facilities the company currently owns.
“This was a two-tiered process. First, we had to find out what was out there, and then we had to find out which bidders are capable of acquiring a facility, and that requires more-detailed information,” Huckelberry says.
Regarding Moore’s complaint that the county hired a Chicago firm to help find qualified purchasers, Huckelberry says the sale of Posada isn’t a standard real estate transaction, because it involves a public long-term care facility. “This company has experience selling publicly owned long-term care facilities, including nursing homes,” Huckelberry says.
The change in the amount of earnest money from $250,000 to $500,000 was to make sure that bidders were serious. Mavin, according to Huckelberry, didn’t respond.
“We are absolutely willing and prepared to defend our decision,” Huckelberry says.
Huckelberry says the county was indeed concerned about the issues brought up regarding nursing-care facilities owned by Eric Rothner; that’s why two staff members were sent to look at the facilities in Nebraska owned by William “Avi” Rothner.
A letter from William “Avi” Rothner, provided to the county, explained that when he first bid on Posada del Sol, the initial bid came from Hunter Properties, but that once the sale is complete, he will create a new LLC for the facility.
Eric Rothner does not have ownership in the Nebraska facilities, and will not have ownership in Posada del Sol, William “Avi” Rothner told the Weekly.
He says he thinks Moore’s allegations are part of a smear campaign by Mavin Enterprises.
“That’s a dirty pool I don’t play in,” Rothner says, adding that Mavin sent him a letter offering $1 million to flip the contract to Mavin.
“I’m not interested in talking about Mavin. We did this bid properly, and we reached out to the county and answered all their questions. That’s what matters,” he says.
This article appears in Sep 15-21, 2011.
Sorry, Charlie. I’ve worked in nursing homes for 25 years in 3 states (including Posada Del Sol)- the typical staff count is one per patient. At 156 beds, that would be 156 employees, tops. this place is the most overstaffed of any I have worked at. But they do take patients that others won’t, as a last resort. They have 300 employees? There is no way that place is being bought without serious cuts preplanned. Along with AHCCCS cuts twice this year, some places are attempting to discharge the nonprofitable patients (those on long term care, those with behavior issues that are not fully reimbursed for that added cost, and the likes), in order to focus either on Medicare (skilled, post-hospital) patients, and private pay. And Posada Del Sol is not going to attract private pay patients. Therefore, after the sale, not only likely will lots of staff be cut, but then also the patient count will drop, which will require more staff being cut. Several nursing homes have closed in Tucson (and in the Phoenix area) in the past ten years as it is. The average profit margin in the industry being 3% (less legal costs, which is a constant)- and having no state required minimum staffing ratios required, there will many sad people on the way to UC.
I have worked at Posada also and it has at least 300 employees, some full and some part time and almost all are needed. I also suspect you might be working for the county or buyer trying to lower expectation when you do force retirement or fire us. There is a reason Posada is staffed higher than most nursing homes and that is has the highest levels of care of all nursing homes in southern Arizona with patients that would otherwise be cared for in a Psychiatric Hospitals or intensive care units. Patients who are dependent on ventilator machines and care so survive that No Other Nursing Home Can Accept. Just because we call them residents, doesn’t mean they are not receiving very serious care that can only be given with highly skilled staff and lots of it too. We do all of this with out Hospital money, staffing support or enough money and we do because it needs to be done. To hear what the county government has done is unbelievable. To think that the Star and TV news doesn’t care a lick either just shows how little we care about jobs, taxes and ya the people we are all responsible for.
Shame on you Chuck Huckleberry, county board members, Tucson Star and new guy Hunter
My Mom lives alone at Craycroft and 5th not far from Posada Del Sol. The first thing went through our minds when we first heard about Posada Del Sol was what if it closes? That has always bee a real fear living that close to a metal care place. Will these folks be wandering afound my mom’s car when she get back wiht groceries or is heading out to see the grandkids? After a little time, I calmed down and thought to myslef thats just rediculous Ted. Of course all I had to look at was the Star and it painted a pirture of responsbile governmewnt actions by the County Admn, Huckeberry. Geeze, no I look the foolk again not knowing enough. Why would we have to learn mo0re from a Weekely (no offense meant guys and Gals) thaqt the towns own paper? The more I have read today, and I read all I could findabout the sale, Hunter and Rothner which mind you aint much, the uglier this thing looked. I say that becasue when I googled the names a whole bunch of stuff came up. there is enough there for a highschool reporter to do justice to this. But not in the Star. And this guy William, AKA Avi, AKA Ari Rothner is crying about conpiracy theories. We call that the Pot paintig the Kettle Black where I was born. Washington already blew our trust forever, and you folks in county government and your pals at the Star will do the same unless you CUT WITH THE BULL. Star paper report the truth and county board, do you job working for us. I have three homes in Pima OCunty that I pay taxes on. YOU WORK FOR ME and my Mom, our kids and our neighbors and freinds. We live honest lives and ask back nothing more.
Why are politicians playing mob boss with tax dollars. I, too, read a bit about the buyers on the internet and they sound like thieves and liars. When is our government going to work for us and not for themselves? Everything about this deal sounds illegal on its face.
Frank- when I worked there, the RNs sat around reading books, the CNAs were outside smoking, and the LPNs did all of the work in the place. Regardless, the place has twice the staff ratio of most, and that is not going to be the case when it’s sold, surely you are aware of the LTC situation, if in fact you do work there. It’s a bloated government agency, typical, other than it takes people no other place will. And there is no other place left in the state of AZ that is going to admit those patients if they are discharged. Simple facts of money, a collapsing state governement at all levels, and on, and on. If you want to see a follow up story, anybody at all- pretend you have a sane, mobile, pleasant, and cooperative mother, for example- who’s sole source of payment is ALTCS (AHCCCS), and see if you find ‘anyplace’ that will accept her. A storm is brewing, and this is only the beginning.
Not to mention, Tucson is already crumbling, and bankrupt- yet, the county sells an asset for 2 million less than possible, with all of those lame excuses? Sort of like me saying, for example- well, my house is worth $150,000 but I will sell it to YOU for $120,000 if you PROMISE not to ever paint it pink? And doesn’t most of the county’s $ come from the city of Tucson? And as far as mental patients wandering the streets- that has been the case with the mentally ill for decades, but it’s just going to get worse as nursing homes are forced to discharge patients that only don’t need that level of care (even though they may edn up homeless), but also are a money loser to provide for. Texas reported a plan a month or so ago to discharge 40,000 nursing home patients to save money. Used to be it was far cheaper to house these people in those rather than hospitals, so nursing homes proliferated (like rats)- but now the states don’t even have the $ to pay for a minimal standard of living in nursing homes. Lot’s of them are falling apart, anyway.