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HomeMy WebLinkAbout03-6660SHIPPENSBURG/ SOUTH HAMPTON MANOR, LP Plaintiff DOROTHY REED and RAY REED, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 6,6 doO CIVIL TERM CIVIL ACTION-LAW NOTICE You have been sued in corm. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH iNFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 SHIPPENSBURG/ SOUTH HAMPTON MANOR, LP Plaintiff DOROTHY REED and RAY REED, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- (, ~ ~ O CIVIL TERM CIVIL ACTION-LAW COMPLAINT NOW, comes Shippensburg/South Hampton Manor Limited Partnership ("Shippensburg Health"), by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Complaint and, in support thereof, sets forth the following: 1. Shippensburg/South Hampton Manor Limited Partnership is a Maryland limited partnership duly authorized to conduct business in the Commonwealth of Pennsylvania. 2. Defendant, Dorothy Reed, is an adult individual with a residence address of 121 Walnut Bottom Road, Shippensburg, Cumberland County, Pennsylvania. 3. Defendant, Ray Reed, is an adult individual with a residence address of 1817 West Heishman Gardens, Carlisle, Pennsylvania. 4. Shippensburg Health operates a resident skilled nursing facility (the "facility") located at 121 Walnut Bottom Road, Shippensburg, Cumberland County, Pennsylvania. 5. On or about May 28, 2003, Ray Reed sought to have Dorothy Reed, his wife, admitted to the Shippensburg Health facility. 6. On or about May 28, 2003, Ray Reed executed a Patient Data and Consent Form in connection with having Dorothy Reed admitted to the facility. A true and correct copy of the Patient Data and Consent Form is attached hereto as Exhibit "A" and is incorporated by reference. 7. Pursuant to the Patient Data and Consent Form, Ray Reed and Dorothy Reed agreed to pay for the costs of care not covered by third party payors. Dorothy Reed became a resident of the facility on or about May 28, 2003 and remains a resident to the date of this Complaint. 9. During her residency at the facility, costs have been accruing for services provided by Shippensburg Health to Dorothy Reed. 10. As of November 25, 2003, there remains due and owing the sum of $9,221.10 on the account of Dorothy Reed in accordance with the Statement attached hereto as Exhibit "B" and incorporated by reference. 11. The amount due and owing reflects costs of necessaries as provided by Shippensburg Health to Dorothy Reed. 12. Demand has been made upon Dorothy Reed and Ray Reed to pay the amount due and owing. COUNT I-BREACH OF CONTRACT SItIPPENSBURG HEALTH v. DOROTHY REED and RAY REED 13. Plaintiff incorporates by reference paragraphs one through twelve as though set forth at length. 14. All conditions precedent to recovery have been fulfilled. 15. Dorothy Reed is obligated to pay the costs of her care provided by Shippensburg Health which were are not covered by a third party payor. 16. The costs set forth on Exhibit "B" are not covered by a third party payor. 17. Dorothy Reed has, without justification, failed and refused to pay the amount due. 18. At all times relevant hereto, Ray Reed has been the spouse of Dorothy Reed. 19. As the spouse of Dorothy Reed, Ray Reed is bound to pay for necessaries provided to Dorothy Reed. The care and services provided by Shippensburg Health to Dorothy Reed are necessaries. Ray Reed has, without justification, failed and refused to pay the amount due. Dorothy and Ray Reed have breached the agreement to pay for the costs of care 20. 21. provided. WHEREFORE, Plaimiff requests judgment in its favor and against the Defendants for the sum of $9,221.10, interest, costs, expenses and any additional amount coming due to the date of award. COUNT II-QUANTUM MERUIT SHIPPENSBURG HEALTH v. DOROTHY REED 22. Plaintiff incorporates by reference paragraphs one through twenty-one as though set forth at length. 23. During the period of her residency at the facility, Dorothy Reed has enjoyed the benefit of care and services provided to her by Shippensburg Health. 24. Dorothy Reed has failed and refused to pay for the costs of her care and services provided by Shippensburg Health. 25. Dorothy Reed has been unjustly enriched by her use and enjoyment of the services and care provided by Shippensburg Health without making payment therefor. WHEREFORE, Plaintiff requests judgment in its favor and against Dorothy Reed for the sum of $9,221.10 plus costs, interest and expenses. Respectfully submitted, ~'BRIEN, BARIC & SCHERE~ David A. Baric, Esquire I.D. 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff dab.dir/shcc/reed/complaint.pld 12/17/2883 17:37 7172495755 OBS PAGE 07 VERIFICATION The statements in the foregoing Complaim axe ba~ed upon information which has been assembled by my attorney in this litigation. The language of the statements is not my own. I have read the statements; and to the extent that th~j axe based Ul~On information which I have given to my counsel, they are true and correct to the b~st of my knowledge, information and bclief. I und~rsland that fal.e statements her~in are made subject to the penalties of 1 $ Pa.C.8. § 4904 relating to unswom falsifications to authorities. DATIB: .~jL~ SHIPPENSBURG HEALTH CARE CENTER PATIENT DATA ANb CONSENT FORM q Nanm: ~"~O~fO-~-~ '~..~,,;[ Soc. Sec.~: ~Ol~'~-tq~ Date: Address: i%~q ¢~. ~~k~ City: ~t[~[~ State: ~ Zip Code: [q~ Male ~mal~ Date or Birth: Marital Status: Single ~ Separated Divorced Widowed Primary Insurance: ~ ("~ Policy Number: LOC IGI 14~ Iq,'°~ INSURANCE Policyholder: Group Number: Relationship:~ Secondary Insurance: Policyltoldcr: Relatiol~sbip:. Policy Nnmbcr: MEDICARE#: C'~ ~ Group Nnmbcr: MEDICAID#: RESPONSIBLE PARTY Name: {~CI.x:.._~ (~o¢.-C.( Relationship: Referring Physician: Primary Care Physiciau: Treating Diagnosis: Sca'icc Requested: Occupational Therapy Prinmry Diagnosis: Physical Therapy Spccch Thcrapy Patient's aud/or fanlily's permission to bill and consent to receive treatment, release information and make payment. Under Mcdicare Part B (a National Health Program through which certaiu medical and hospital cxpcnses arc paid from Federal Funds) you must meet the following conditions: 1. You must satisfy your deductible. 2. Medicare will puy 80% of the charge ,'filer the deductible has been satisfied up to a maximuln annual cap. 3. Thc 20% unpaid balance and/or amounts above the annual cap will be billed to you or the person responsible for payiug yonr bills. 4. lf.',ou have a Tic-in Plan or other insurance that x~ill pay the balance wc will submit thc bill to them. 5. This form must be signed by you or your family giving us permission to (1) bill 80% to Medicare and (2) 20% (Co-pay), and amounts above the annual cap, and any deductible not already satisfied, to you or )'our insurance Conlpluly. 6. For patients who arc Medicaid and Medicare Part B and decreed iadigcnt, thc Facility will accept assigmnent pursuant to state laws aud regulations. I authorize trcaUnent and payment of medical benefits to file Facility for services rendered as ordered by my physician. I further authorize file Facility to furnish medical or other information for any claims iucurred for a period of one year under the Title XVIII of the Social Security Act and its intermediary. I hereby accept all responsibility for treatment costs not covered or rdmburscd by third party payers. i~,naturedof Patient or Authorized Representative EXHIBIT UA" Date Witness (Signature) STATEMENT P. 3 SHIPPENSBURG HEALTH CARE CTR 121 WALNUT BOTTOM RD SHIPPENSBURG, PA 17257 Facility Phone: 717-530-8300 Resident: DOROTHY REED RAY REED* 1817 A HEISHMAN GARDENS CARLISLE, PA 17013 Date Service Through Qty Description 10/01/03 05/28/03 05/31/03 8 Room Charges 10/01/03 05/20/03 06/29/03 5 Bed Hold-Room Cha~ges 10/01/03 06/01/03 08/30/03 25 Room Charges 10/01/03 07/01/03 07/01/03 1 Room Charges Stmement Date: 11/25/03 Cash ReceiDts/'Adiustme nta 06/01/03 05/28/03 05/31/03 4 AD J, Room Charges Sub Total Balanoe Sub Toter Balance Amount 2,072.00 1,295.00 6,475,00 259,00 10,101.00 10,101.00 -1.036.00 -1,0,36.00 9,065,00 AnclllerV/Qther Charoes 10/01/03 06/03/03 06/06/03 06/16/03 06/16/03 06/16/03 5 97535OT- ADL MANAGEMENT TRAINING 1 CABLE Sub Total Balance aa of: 11/26/03 Total Amount Due 149.10 7,00 156.10 9,221,10 9,221.10 EXHIBIT "B" Page ~ SHERIFF'S RETURN - CASE NO: 2003-06660 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SHIPPENSBURG/SOUTH HAMPTON MAN VS REED DOROTHY ET AL REGULAR JASON VIORAL Cumberland County,Pennsylvania, says, the within COMPLAINT & NOTICE REED DOROTHY DEFENDANT , at 0915:00 HOURS, on the at 1817 HEISHMAN GARDENS CARLISLE, PA 17013 DOROTHY REED a true and attested copy of COMPLAINT & NOTICE Sheriff or Deputy Sheriff of who being duly sworn according to law, was served upon the 12th day of January , 2004 by handing to together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 3.45 Affidavit .00 Surcharge 10.00 .00 31.45 Sworn and Subscribed to before me this /~ day of  ~&~¥ A.D. ! ~rothonotary' ! ~, So Answers: R. Thomas Kline ox/1~/2oo4 OBRIEN BARIC SCHERER uty Sheriff SHERIFF'S RETURN - REGULAR CASE NO: 2003-06660 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SHIPPENSBURG/SOUTH HAMPTON MAN VS REED DOROTHY ET AL JASON VIORAL , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according says, the within COMPLAINT & NOTICE was served upon REED RAY DEFENDANT at 0915:00 HOURS, at 1817 WEST HEISHMAN GARDENS CARLISLE, PA 17013 DOROTHY REED, WIFE a true and attested copy of COMPLAINT & NOTICE the on the 12th day of January , __ by handing to together with tO law, 2004 and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before So Answers: R. Thomas Kline 01/13/2004 OBRIEN BARIC SCHERER By: ty She~if f SHIPPENSBURG/ SOUTH HAMPTON MANOR, LP, Plaintiff VS. DOROTHY REED and RAY REED, Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION : NO. 2003 6660 CIVIL TERM : : CIVIL ACTION - LAW : : GURY TRIgL DEM/~DED NOTICE TO the Plaintiff: You are hereby notified to plead to the enclosed New Matter within twenty (20) days from service thereof or a default judgment may be entered against you. Dale F. Shug~'art Attorney for Def, lda~t s SHIPPENSBURG/ SOUTH HAMPTON MANOR, LP, Plaintiff VS. DOROTHY REED and RAY REED, Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION : : NO. 2003 6660 CIVIL TERM : CIVIL ACTION - LAW : JURY TRIAL DEMANDED ANSWER AND NEW MATTER B_ND NOW, come the Defendants, Dorothy' Reed and Ray Reed, by their attorney, Dale F. Shughart, Jr., Esquire, and file the following Answer and New Matter in response to Plaintiff's Complaint: ANSWER 1. Admitted. 2. Admitted in part. Denied in part. Dorothy Reed is an adult individual. She resides at 1817-A Heishman Gardens, Carlisle, PA 17013. 3. Admitted in part. Denied in part. Defendant Ray Reed is an adult individual. He resides at 1817-A Heishman Gardens, Carlisle, PA 17013. 4. Admitted with a clarification. An entity known as Shippensburg Health Care Center operates a skilled care facility at the stated address. (emphasis added). 5. Denied. On the contrary, Defendant Dorothy Reed was a resident in a skilled nursing care unit at York Hospital, as a result of a medical condition diagnosed as Alzheimer's. Ray Reed, husband of Dorothy Reed, undertook an effort, through Cheryl Bjorum, Social Worker at York Hospital, to arrange for a transfer of his wife to a location closer to their home. The Social Worker at York Hospital arranged the transfer to Shippensburg Health Care Center, which took place on May 28, 2003. 6. Admitted. 7. Denied. On the contrary, the document speaks for itself. By way of further Answer Ray Reed signed the document on behalf of Dorothy Reed, as her authorized representative. He did not assume personal responsibility for her care. Additionally, Shippensburg Health Care Center only accepted Dorothy Reed as their resident after Mrs. Reed had been certified for 100% coverage through Mrs. Reed's medical insurance as reflected upon the insurance coverage verification obtained by Shippensburg Health Care Center before agreeing to admit Mrs. Reed as a resident. True and correct copies of the insurance coverage confirmation provided to Defendants by Shippensburg Health Care Center and Mrs. Reed's medical insurance card are attached hereto, made a part hereof and marked Exhibits "C" and "D" respectively. 8. Admitted in part. Denied in part. Dorothy Reed became a resident of the facility on May 28, 2003. She was discharged from care, to her own home, on July 2, 2003. 9. Admitted in part. Denied in part~ It is admitted that the costs were incurred for Mrs. Reed's care from May 28, 2003 through July 1, 2003. Mrs. Reed was discharged from However, Shippensburg Health Care Center to her home on July 2, 2003 and no additional charges have been incurred for her care at the Center since that time. 10. Admitted in part. Denied in part. It is admitted that Plaintiff's Exhibit "B" is a copy of Shippensburg Health Care Center's bill sent to Ray Reed in November 2003. As to the remaining averments of Paragraph 10 of Plaintiff's Complaint, Defendants are without knowledge or informa~sion sufficient to form a belief as to the truthfulness of those averments and proof thereof is demanded. By way of further Answer, Shippensburg Health Care Center, as a participant in the Anthem Blue Cross/Blue Shield Health Insurance Plan of Dorothy Reed, the amounts authorized by Anthem Blue care provided and to accept direct Cross/Blue Shield. 11. Denied. agreed to accept payment in Cross/Blue Shield for the payment from Anthem Blue After reasonable investigation, the Defendants are without knowledge or information sufficient to form a belief as to the truthfulness of the averments of Paragraph 11, and proof thereof is demanded. By way of further Answer, the averments of Defendants' Answer to Paragraph 10 of Plaintiff's Complaint is incorporated herein by reference thereto. 12. Admitted in part. Denied in Part. It is admitted that the Shippensburg Health Care Center has submitted a bill, Plaintiff's Exhibit "B", to the Defendants. It is denied that Defendants owe any obligation to Plaintiffs. By way of further --3- Answer, the averments of Defendants' Plaintiff's Complaint and Defendants' therein by reference to. Answer to Paragraph 10 of New Matter are incorporated COUNT I - BREACH OF CONTRACT 13. NO Answer required. 14. Denied. On the contrary, Shippensburg Health Care Center accepted Dorothy Reed as a resident, and iDorothy Reed agreed to become a resident, on the basis that the reasonable charges for Mrs. Reed's care would be paid by Anthem Blue Cross/Blue Shield. It is believed and therefore averred that the Shippensburg Health Care's claim for payment was improperly submitted to Anthem Blue Cross/Blue Shield, and Shippensburg Health Care failed to resubmit proper documents after being notified that the original submission was rejected. 15. Denied. On the contrary, the averments of Defendants' other Answers to the Complaint and New Matter are incorporated herein by reference thereto. 16. Denied. On the contrary, the averments of Defendants' other Answers to the Complaint and New Matter are incorporated herein by reference thereto. 17. Denied. On the contrary, the averments of Defendants' other Answers to the Complaint and New Matter are incorporated herein by reference thereto. 18. Admitted. -4- 19. Denied. On the contrary, for the reasons set forth in Defendants' other Answers to Plaintiff's Complaint and New Matter, Ray Reed is not obligated to pay for the care of Dorothy Reed at Shippensburg Health Care Center. As to the averments that care and services provided constituted "necessaries", Defendants are without knowledge or information sufficient to form a belief as to the truthfulness of those averments and proof thereof is demanded. 20. Denied. On the contrary, the averments of Defendants' other Answers to Plaintiff's Complaint and New Matter are incorporated herein by reference thereto. 21. Denied. On the contrary, the averments of Defendants' other Answers to Plaintiff's Complaint and New Matter are incorporated herein by reference thereto. WHEREFORE, Defendants request judgment be entered in favor of the Defendants and against the Plaintiff. COUNT II - QUANTUM MERUIT 22. No answer required. 23. Admitted. 24. Admitted in part. Denied in part. It is admitted that Dorothy Reed has failed to pay for the cost of her care at Shippensburg Health Care Center. The remaining averments are denied. On the contrary, the averments of Defendants' other Answers to the Complaint and New Matter are incorporated herein by reference thereto. -5- 25. Denied. On the contrary, the averments of Defendants' other Answers to the Complaint and New Matter are incorporated herein by reference thereto. WHEREFORE, Defendants request judgment in favor of the Defendants and against the Plaintiff. ~W~ATTER 26. Plaintiff has pleaded no facts which allege Defendants are obligated in any manner to the Plaintiff, Shippensburg/South Hampton Manor, LP. If any obligation is owed by the Defendants (which is denied), it is to Shippensburg Health Care Center which provided care for Mrs. Reed, 27. Dorothy Reed was a nursing care facility after as admitted above. resident at York Hospital's skilled being diagnosed as suffering from Alzheimer's. At Mr. Reed's request, in order to transfer Mrs. Reed closer to her home, the Social Worker at York Hospital arranged for a transfer to Shippensburg Health. Mrs. Reed's care at York Hospital was fully covered by her medical insurance. 28. Mrs. Reed agreed to be admitted and was only admitted to Shippensburg Health Center on the condition precedent that the total cost of her care would be paid by her medical insurance carrier, Anthem Blue Cross/Blue Shield, as confirmed by Exhibit "C" attached hereto, and not by Mr. Reed or i~er, personally, which confirmation Shippensburg Health received and agreed to accept. 29. Defendant Ray Reed took Defendant Shippensburg Health Care Center on May 28, 2003. Dorothy Reed to Due to Mrs. Reed's medical condition, she was not capable of signing documents at the time of her admission. Defendant Ray Reed signed them on her behalf as her representative. He did not assume personal responsibility for payment for her care. 30. Shippensburg Health Care Center assumed sole responsibility for properly preparing and submitting claims for payment for services and care provided to Mrs. Reed to Anthem Blue Cross/Blue Shield. 31. Defendant Dorothy Reed was discharged from Shippensburg Health Care Center to her home on July 2, 2003. At some unknown time Shippensburg Health Care Center submitted its claim for payment to Anthem Blue Cross/Blue Shield. By letter dated October 16, 2003, Anthem Blue Cross/Blue Shield responded to Shippensburg Health Care Center denying the claim on the basis that the care provided was "psychiatric and behavioral" not "skilled nursing care". Dorothy Reed was admitted to the Shippensburg Health Care Center for skilled nursing care, although her medical insurance policy does cover up to 45 days for mental health issues, as well. 32. Attached hereto, made a part hereof, and marked Exhibit "E" is a true and correct copy of the letter from Anthem Blue Cross/Blue Shield to Shippensburg Health Care Center. First, it is obvious from the response that the claim submitted for payment was not properly made. Second, the fourth paragraph of Exhibit "E" demonstrates that Shippensburg Health Care Center had the means of rectifying the rejection by requesting reconsideration of the decision. 33. It is believed and therefore averred that Shippensburg Health Care Center did not request a reconsideration of the decision nor submit correct information to Anthem Blue Cross/Blue Shield. If Shippensburg Health Care Center had done so, it would have received payment in full for its services provided, pursuant to its agreements with Anthem Blue Cross/Blue Shield and Mrs. Reed. 34. After Mr. Reed received the Shippensburg Health's bill of November 23, 2003, attached as Exhibit "B" to Plaintiff's Complaint, he contacted Lear Corporation, which provides Mrs. Reed's medical insurance coverage. Attached hereto, made a part hereof and marked Exhibit "F" is a true and correct copy of Lear Corporation's letter of December 16, 2003, confirming Defendant Dorothy Reed's care at Shippensburg Health Center is fully covered by her medical insurance. 35. Shippensburg Health Care Center is entitled to payment through Dorothy Reed's medical insurance carrier, Anthem Blue Cross/Blue Shield, for the entire cost of her care at the Shippensburg Health Care Center from May 28, 2003 through July 1, 2003, in accordance with the agreement of the parties, as soon as Shippensburg Health Care Center properly submits its claim for payment to the medical insurance company. Under the circumstances, neither Defendant has any obligation to Shippensburg Health Care Center or Plaintiff. 36. The contract between Dorothy Reed, by her authorized representative, Ray Reed, expressly provided that Shippensburg Health Care Center would accept as full payment Mrs. Reed's medical insurance coverage, which had been pre-approved prior to her admission and that neither Defendant would be personally responsible to Shippensburg Health for the cost of Mrs. Reed's care. 37. Under the law of the Commonwealth of Pennsylvania and the United States of America, based upon the facts and circumstances of this case, Defendant Ray Reed, is not obligated in any manner for any obligation which may be owed to Shippensburg Health Care Center for the care of Dorothy Reed from May 28, 2003 to July 2, 2003. WHEREFORE, Defendants request Your Honorable Court to enter judgment in favor of the Defendants and against the Plaintiff. Respectfully sub,mit ~e~, 35 East High Street, Suite 203 Carlisle, PA 17013 (717) 241-4311 Attorney for Defendants -9- VERIFICATION Dorothy Reed and Ray Reed hereby verify that the facts set forth in the foregoing Answer and New Matter are true and correct to the best of their knowledge, information and beliDf, and understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsifications. DATE: January 23, 2004 -10- SHIPPENSBURG HEALTH CARE CENTER INSURANCE COVERAGE VERIFICATION To verify the Medicare Claim Numbcr Contactl Name of Resident: '~")O¢-O~¢hx-/ Social Security #: Medicare//: C~ Contact Persoo: / Part A: Mcs No Part ~ Ycs No / NO Cove/~- Explain:__ __ U cs/~e exactly ~s. it ~p. p~:rs ~n Social Security: (VERY IMPORTANT! H) /I>~0TE: A copy of thc Medicare Card can be used as coverage ~crifica.tion. " , E SOCIAL SELURITY OFFIC DateofBirth: l/- ~)Ci- Datc Verified: Additional Insurance Coverage Verification: h~sumncc Compm~y Name: ~ Contact Person: Title: Address: Phone:// BencfitsAvailable: /20 Cl. Ot~!-~, / c4_C¢~(-rt_~ ~' IC:OC%c, ~,~MF Facility Employco Vcri6'ing Information: ~ ~ ~( ~ ~ ~q~Datc Verified: ~-O~ 1,"~22Cb[ , ~_C~ , have been iaformed of Medicare and secondary insurance coverage pertainin~ to the period of stay at Shippensburg Health Care Center. ignatu'rk of Res'ident or Authorized Representative Date Anthem..'D. Date.: 10/16/2003 Shippensburg Healtcare Center 121 Walnut Bottom Rd Shippensburg, PA 17257 Re: Identification No: 191461736 Case No: 7030162730 Dear Dorothy A Reed It's important to us that you receive all the benefits your health plan promised and that you understand how your benefits work. In cases where coverage is not approved, we want you to understand why. Your Anthem health care benefits require that we review your inpatient services to determine if the services are medically necessary, covered under your plan and provided in the appropriate medical setting. We have completed a review for your skilled nursing home admission of 05/28/2003 and we are sorry to inform you that we are unable to provide coverage. Our review included all of the medical information we have on your case, along with the Recovery Facility Guidelines / Milliman Care Guidelines 8th edition. Our review indicated that the care you received was psychiatric and behavioral in nature and you did not receive skilled medical services such as extensive wound care, aggressive therapies, or complicated IV therapies. According to your health care coverage, services in a skilled nursing facility are covered when medically skilled services are provided. Coverage is not provided for services that are custodial or can be managed in the home or .in an outpatient setting such as your physician's office. We are sorry that our decision was not a favorable one. If your physician would like to discuss this with me fudher, he or she can call me at 1-800-242-7277. Your physician can also request a reconsideration of this decision. To request a reconsideration, your physician or the hospital must call us and provide any additional information we may not have. Your case will then be reviewed by another physician who did not participate with this decision and a decision rendered within 10 working days after we receive the verbal request You also have a right to see, upon request and at no charge, any rule, guideline, protocol, criterion or medical records that Anthem relied upon in n,aking this coverage decision. With Anthem coverage, you have the right to request an appeal of this decision. As part of this process, you are entitled to be represented by an attorney or any person you may need to authorize to act on your behalf. To appeal this coverage decision, please send to the address below a written explanation of why you feel the coverage decision was incorrect. Unless your plan specifies otherwise, this information may also be provided to us over the phone. Send written appeals to: Anthem Blue Cross Blue Shield Attn: Corporate Appeals Department P.O. Box 27401 Richmond, VA 23279 You must file your appeal within either 15 months of the date of service or 180 days of the date on this letter, whichever is later. In either case, Anthem will resolve and respond in writing to all appeals within 60 calendar days. If you are a member of an ERISA-regulated group health care plan, you may have the right to bring civil action PC044 Anthem Blue Cross and Blue Shield is'the b-ade name of Anthem Health Plans of Virginia. Inc, An independent licensee or the Blue Cross and Blue Shield Asso:iation, ® Registered marks Blue Cross and Blue Shield Association. under bOZ (a} ot ERISA. Federal, state and local government programs, church plans, and individual policies are not regulated under ERISA. Thank you for the opportunity to review your request. Should you have any further questions, please contact Klm Taylor RN, your case manager, at 1-800-242-7277. We are available lo assist you between the hours of 8:00 A.M. and 5:00 P.M., Monday through Friday. If you need to call after hours or on holidays, our answering service wiII take a message and we'll call you back the next business day. Sincerely, Jay Schukman MD, Medical Director Medical Management Program cc: Shippensburg Healtcare Center Dr B. Drew Wellmon Patient Name: Health Plan: Facility: Physician: Non-covered Period: Dorothy A Reed Anthem Blue Cross and Blue Shield Shippensburg Heaitcare Center Dr B. Drew Wellmon 05/28/2003 - 07/01/2003 PC044 Anthem Blue Cross and Blue Shield is the Irade name of Anthem Health plans of Virginia. Inc. An independent licensee of the Blue Cross and Blue Shield Association.. ® Registered marks Blue Cross and Blue Shield Association. O LEAR CORPORATION Interior Systems G~oup 50 Spring Road Carlisle, PA 17013 USA Phone [717] 249-1866 December 16, 2003 Phone: (717)-258-7440 Fax: (717)-258-7604 Mr. Ray Reed 1817A Heishman Gardens Carlisle PA 17013 Re: Shippensburg Healthcare Center Dear Ray, I called Anthem and spoke with Leslie in the Customer Service Center on 12-15-03 concerning the issue that coverage of Dorothy's stay at the above referenced facility was denied. I relayed to Leslie that according to the Summary Plan Description that Dorothy has skilled nursing coverage; as well as a 45 day limit for mental health issues. I further indicated that I, myself, called Anthem and spoke with Trudy who advised that Dorothy was covered under a skilled nursing facility, as long as it was a PPO. She agrees with me. She indicated that apparently the problem lies with the manner in which the claim was submitted and that the Healthcare Center needs to contact Anthem to determine exactly how this should be submitted in order for coverage to take effect. Leslie also indicated that the letter the healthcare center received from Jay Schukman denying coverage due to the fac~ that it was submitted as skilled nursing, rather than a psychiatric stay. Leslie advised that you should have the healthcare provider re-contact Anthem at the following phone number: 1-800-242-7277. Hopefully, this will resolve the issue. Mana~n~i'" Nancy,,. Shellenbn~tgr~;ive and Benefit Services SHIPPENSBURG/ SOUTH HAMPTON SLANOR, LP, Plaintiff vs. DOROTHY REED and RAY REED, Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION : : NO. 2003 - 8660 CIVIL TERM : : CIVIL ACTION - LAW : : JURY TRIAL DEMANDED CERTIFICATE OF SERVICE AND NOW, this 26th day of January, 2004, I, Dale F. Shughart, Jr., Esquire, attorney for Dorothy and Ray Reed, Defendants, hereby certify that I have served a copy of the Answer and New Matter by mailing a copy of the same by United States mail, postage prepaid, addressed as follows: David A. Baric, Esquire O'Brien, Baric & Scherer 17 West South Street Carlisle, PA 17013 ~a~~ Dale F. L ' Attorney I.D. 1937[ 35 East High Street, Suite 203 Carlisle, PA 17013 (717) 241-4311 Attorney for Defendants SHIPPENSBURG/ SOUTH HAMPTON MANOR, LP Plaintiff DOROTHY REED and RAY REED, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003-6660 CIVIL TERM CIVIL ACTION-LAW REPLY TO NEW MATTER AND NOW, comes Plaintiff, by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Reply to New Matter and, in support thereof, sets forth the following: 26. Denied. By way of further answer, Shippensburg/South Hampton Manor, L.P. is the limited partnership which owns and operates the skilled care facility known as Shippensburg Health Care Center. 27. After reasonable investigation, Plaintiff is without knowledge, information or belief sufficient to form a belief as to the truth of these averments and they are, therefore, denied. 28. Denied. To the contrary, the Defendants agreed to be responsible for costs of care which were not covered by a third party payor and at no time did the Defendants indicate that complete insurance coverage was a condition precedent to admission of Dorothy Reed to the facility. 29. Denied. After reasonable investigation, Plaintiff is without knowledge or infom~ation sufficient to form a belief as to the troth of the averments regarding transportation of Dorothy Reed to the facility or her ability to sign documents. The remaining averments are denied. To the contrary, Ray Reed was noted as being the "Responsible Party". Moreover, a husband is responsible for the costs of necessaries provided to his spouse. 30. Denied. To the contrary, the policy of insurance is held by Dorothy Reed. 31. Admitted in part and denied in part. Admitted only that Dorothy Reed was discharged from the facility on July 2, 2003, that Plaintiff submitted a bill for costs of care to Anthem Blue Cross/Blue Shield and that Anthem has failed and refused to pay the costs. The remaining averments are denied as the Plaintiff is, after reasonable investigation, without information or knowledge sufficient to form a belief as to their truth. 32. Denied. To the contrary, the letter is directed to Dorothy Reed and indicates that she has the right of appeal of the decision. Further, there is no indication from the letter that supports Defendants' bald assertions that a claim was "not properly made". 33. Admitted in part and denied in part. Admitted only that Plaintiff has not requested a reconsideration of the decision made by the health care insurer of Defendant, Dorothy Reed. Any implication that Plaintiff is required to make such a request is denied. The remaining averments are denied. Moreover, Defendants' averments regarding payment by the insurance company are pure speculation. 34. After reasonable investigation, Plaintiffis without knowledge or information sufficient to form a belief as to the truth of these averments and they are, therefore, denied. 35. Admitted in part. It is admitted only that Plaintiff is entitled to payment from either the insurer of Dorothy Reed and/or the Defendants. The remaining averments are denied. To the contrary, the Defendants are directly obligated to Plaintiff to pay for the costs of care provided. 36. Denied. To the contrary, the contract specifically and clearly obligated the Defendants to pay for the costs of care. 37. Denied. To the contrary, Defendants are obligated to pay for the costs of care. WHEREFORE, Plaintiff requests judgment in its favor and against Defendants as prayed for in Plaintiff's complaim. Respectfully submitted, O'BRIEN, BARIC & SCHER~R David A. Baric, Esquire I.D. 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff dab.dir/shcc/reed/newmatter, rep VERIFICATION I verify that the statements made in the foregoing Reply To New Matter are true and correct to the best of my knowledge, information and belief. This verification is signed by David A. Baric, Esquire, Attorney for Plaintiff and is based upon the statements provided by Plaintiff, as well as documents reviewed by the undersigned as attorney for Plaintiff. This verification will be substituted and ratified by a verification signed by the Plaintiff who is presently unavailable to sign said verification. I undersigned that false statements herein are made subject to penalties of 18 Pa.C.S. §4904, relating to unsworn falsifications to authorities. Dated: a~//t~/~¢ David A. Baric, Esquire CERTIFICATE OF SERVICE I hereby certify that on February 10, 2004, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Reply To New Matter, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Dale F. Shughart, Jr., Esquire 35 East High Street, Suite 203 Carlisle, Pennsylvania 17013 David A. Baric, Esquire SHIPPENSBURG/ SOUTHAMPTON MANOR, LP Plaintiff DOROTHY REED and RAY REED, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003-6660 CIVIL TERM CIVIL ACTION-LAW ORDER OF COURT AND NOW, this ~t; day of ~~,2004, foregoing Petition For Appointment Of Arbitrators, ~//d~ ¢ arbitrators in the above-captioned action as prayed for. in consideration of the BY THE COURT, SHIPPENSBURG/ SOUTHAMPTON MANOR, LP Plaintiff DOROTHY REED and RAY REED, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003-6660 CIVIL TERM CIVIL ACTION-LAW PETITION FOR APPOINTMENT OF ARBITRATORS TO THE HONORABLE, JUDGES OF SAID COURT: David A. Baric, Esquire, counsel for the Plaintiff in the above-captioned action, respectfully represems that: 1. The above-captioned action is at issue. 2. The claim of the Plaintiff in the action is $9,221.10. The following attorneys are interested in the case as counsel or are otherwise disqualified to sit as arbitrators: David A. Baric, Esquire and Dale F. Shughart, Jr., Esquire. WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. Respectfully submitted, O'mE A aC %S RER David A. B~ic, Esquire I.D. ~ 44853 19 West South S~eet C~lisle, Pe~sylv~ia 17013 (717) 249-6873 dab.dir/shcc/reed/ar bitr ation.pet CERTIFICATE OF SERVICE I hereby certify that on September g _, 2004, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Petition For Appointment Of Arbitrators, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Dale F. Shughart, Jr., Esquire 35East High Street, Suite 203 /] Carlisle, Pennsylvania 17013 David A. Baric, Esquire Plaintiff D~endant In The Court of Common Pleas of Cumberland County, Pennsylvania No. Civil Action - Law. Oath We do solemnly swear (or affirm) that we will support, obey and defend the Constitution of the United States and the Constitution of this Commonwealth and that we will discharge the duties of our office Name (Chairman) :awF~ p Address [~ Signature N~me Law F/nn Address City, Zip Signature Ad,ess ci~, zip Award We, the undersigned arbitrators, having been duly appointed and sworn (or affirmed), make the following award: ..--(Note: If damages for delay ~e awarde, l;1, they shall be~para, tely s~.ted.) /....nAIbitrat/~di/~ents. (Ins ert name if apphcable.) Notice of Entry of Award :ow, the 13~' dayof h~,.--->,-~, ,20~q ,at.;.:3 , /~.~., the above award ~v~s entered upon the docket and notice thereof given by mail to the parties or their attorneys. Arbitrators' compensation to be paid upon appeal: $ o,Qc~f3,,or-) Prothonotary C Deputy SHIPPENSBURG/ SOUTH HAMPTON MANOR, LP Plaintiff DOROTHY REED and RAY REED, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003-6660 CIVIL TERM CIVIL ACTION-LAW PRAECIPE TO SATISFY TO THE PROTHONOTARY: Please mark the judgmem entered in the above-captioned matter on December 13, 2004 as satisfied. Respectfully submitted, O'BRIEN, BARIC & SCHERER , 7 David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 dab.dir/shcc/reed/satisfy.pra CERTIFICATE OF SERVIC. E I hereby certify that on December 29, 2004, I, David A. Baric, Esquire of O'Brien, Baric &Scherer, did serve a copy of the Praecipe To Satisfy, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Dale F. Shughart, Jr., Esquire 35 East High Street, Suite 203 Carlisle, Pennsylvania 17013 David A. Baric, Esquire