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HomeMy WebLinkAbout14-3746 Supreme Court -of`Pennsylvania Co Urt:of Common,Pleas For Prothonotary Use Only: Civil Cover_Sheet Docket No: CUMBERLAND - County ✓ / «! VVV/// The information collected on this farm is used solely for court administration purposes. This form does not supplement or replace thefiling and service ofpleodings or other papers as required by law or rules of court. Commencement of Action: S El Complaint 0 Writ of Summons 0 Petition 0 Transfer from Another Jurisdiction 0 Declaration of Taking E C Lead Plaintiff s Name: Lead Defendant's Name: T CAPOZZI ADLER, P.C. Reflection Lifecare Group, Inc. and Donna Salko I Are money damages requested? Q Yes No Dollar Amount Requested: Owithin arbitration limits Y g 9 (check one) Ooutside arbitration limits O N Is this a Class Action Suit? 0 Yes El No Is this an MDJAppeal? Yes El No A Name of Plaintiff/Appellant's Attorney: Marc A. Crum, Esq. 0 Check here if you have no attorney(are a Self-Represented (Pro Sel Litigant) Nature of the Case: Place an"X"to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim, check the one that you consider most important. TORT(do not include Mass Tort) CONTRACT (do not include Judgments) CIVIL APPEALS 0 Intentional 0 Buyer Plaintiff Administrative Agencies 0 Malicious Prosecution 0 Debt Collection: Credit Card 0 Board of Assessment 0 Motor Vehicle E] Debt Collection: Other 0 Board of Elections 10 Nuisance legal fees for services 0 Dept.of Transportation 0 Premises Liability Statutory Appeal: Other S 10 Product Liability (does not include 0 Employment Dispute: E mass tort) MSlander/Libel/Defamation Discrimination C 0 Other: 0 Employment Dispute: Other 0 Zoning Board T 0 Other: I 0 Other: O MASS TORT 0 Asbestos N 0 Tobacco MI Toxic Tort-DES 0 Toxic Tort-Implant REAL PROPERTY MISCELLANEOUS 0 Toxic Waste 0 Other: 0 Ejectment E] Common Law/Statutory Arbitration B 0 Eminent Domain/Condemnation Declaratory Judgment 0 Ground Rent 0 Mandamus 0 Landlord/Tenant Dispute 0 Non-Domestic Relations 0 Mortgage Foreclosure: Residential Restraining Order PROFESSIONAL LIABLITY 0 Mortgage Foreclosure: Commercial 0 Quo Warranto 0 Dental 0 Partition 0 Replevin 0 Legal 0 Quiet Title 0 Other: 0 Medical 0 Other: 0 Other Professional: Updated 1/1/2011 f `F G CAPOZZI ADLER, P.C. f/k/a IN THE COURT OF COMMON PLEAS OF CAPOZZI & ASSOCIATES, P.C., CUMBERLAND COUNTY, PENNSYLVANIA A Pennsylvania Professional Corporation Plaintiff V. Docket No.: �;r} t REFLECTION LIFECARE GROUP INC. ,v cn~ t�a d/b/a REFLECTION LIFECARE GROUP, -.5._. and DONNA M. SALKO, , Defendants Civil Action - Law :2 � - .�7-_Y NOTICE TO DEFEND You have been sued in court. If you wish to YOU SHOULD TAKE THIS PAPER TO defend against the claims set forth in the following YOUR LAWYER AT ONCE.IF YOU DO NOT pages, you must take action within twenty (20) HAVE A LAWYER OR CANNOT AFFORD days after the complaint and notice are served, by ONE,GO TO OR TELEPHONE THE OFFICE entering a written appearance personally or by SET FORTH BELOW TO FIND OUT WHERE attorney and filing in writing with the court your YOU CAN GET LEGAL HELP. defenses or objections to the claims set forth against you. You are warned that if you fail to do CUMBERLAND COUNTY BAR so the case may proceed without you and a ASSOCIATION judgment may be entered against you by the court 32 SOUTH BEDFORD without further notice for any money claimed in STREET CARLISLE, PA 17013 the complaint or for any other claim or relief 1-800-990-9108 requested by Plaintiff. You may lose money or 717-249-3166 propertyor other rights important to you. AVISO Le han demandado a usted en la corte. Si usted LLEVE ESTA DEMANDA A UN ABOGADO quiere defenderse de estas de estas demandas INMEDIATAMENTE, SI NO TIENE expuestas an las paginas signientes, usted tiene ABOGADO O SI NO TIENE EL DINERO veinte (20) dial de plazo al partir de is fecha de la SUFICIENTE DE PAGAR TAL SERVICIO. demanda y is notificacion. Hace falta asentar una VAYA EN PERSONA O LLAME POR comparencia escrita o en persona o con un abogado y entregar a la corte en forma escrita sus defensas o TELEFONO A LA OFICINA CUYA sus objeciones a las demandas en contra de su DIRECCION SE ENCUENTRA ESCRITA persona. Sea avisado que si usted no se defiende, ABAJO PARA AVERIGUAR DONDE SE le corte tomara medidas y puede continuar la PUEDE CONSEGUIR ASISTENCIA demanda en contra suya sin previo aviso o LEGAL. notificacion. Ademas, la corte puede decidir a favor del demandante y requiere que usted cumpla CUMBERLAND COUNTY BAR con todas las provisiones de esta demanda. Usted ASSOCIATION puede perder dinero o sus propiedades u ostros 32 SOUTH BEDFORD derechos importantes para usted. STREET CARLISLE, PA 17013 1-800-990-9108 717-249-3166 � IgIb3.�S,�a CAPOZZI ADLER, P.C. f/k/a IN THE COURT OF COMMON PLEAS OF CAPOZZI & ASSOCIATES, P.C., CUMBERLAND COUNTY, PENNSYLVANIA A Pennsylvania Professional Corporation Plaintiff V. Docket No.: REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP, and DONNA M. SALKO, Defendants Civil Action - Law COMPLAINT NOW COMES, Plaintiff, Capozzi Adler, P.C. f/k/a Capozzi & Associates, P.C., by its attorneys,to seek a money judgment and legal relief necessary to obtain payment for legal services rendered, invoiced, and presented, but which remain unpaid. In support of the relief requested herein, Capozzi Adler, P.C. states: 1. Plaintiff, Capozzi Adler, P.C. ("Plaintiff' or"Capozzi"), is a Pennsylvania professional corporation engaged in the practice of law, with its business address at 1200 Camp Hill Bypass, Suite 205, Camp Hill, Cumberland County, Pennsylvania 17011. 2. Defendant Reflection Lifecare Group, Inc. d/b/a Reflection Lifecare Group ("Defendant Reflection Lifecare Group" or"Reflection Lifecare Group") is a Pennsylvania corporation having its principal place of business located at 37 Honesdale Road, Carbondale, Lackawanna County, Pennsylvania 18407. 3. Defendant Donna M. Salko ("Defendant Salko") is an adult individual with a last known address of 301 Canaan Street, Carbondale, Lackawanna County, Pennsylvania 18407 and is the President and owner of Reflection Lifecare Group, Inc. Attached is a copy of the Business Entity Filing History report from the Pennsylvania Department of State as Exhibit "A." 4. Capozzi is engaged in business as a law firm composed of attorneys admitted to the bar of the Supreme Court of the Commonwealth of Pennsylvania. 2 The Legal Representation Agreement 5. In April 2012, Capozzi and Reflection Lifecare Group entered into a professional relationship for legal services through its agent and former principal officer, Dr. Gregory Salko, deceased. A true and correct copy of the Letter of Representation("Fee Agreement") dated April 26, 2012 is attached hereto and incorporated herein as Exhibit `B." 6. The terms of Capozzi's performance of legal services for Reflection Lifecare Group were disclosed at the outset of the engagement. 7. The terms of the Fee Agreement provide that "this letter will describe the scope of services to be provided, the basis for determining the fees for those services and our general terms and conditions for billing." 8. The Fee Agreement also provides "Should the scope of services to be provided be changed or enlarged beyond those described in this letter, we reserve the right to amend or supplement this letter and the fees charged for the change or increase in the scope of services." 9. The Fee Agreement also provides that "our firm sends periodic invoices, usually monthly, detailing services rendered during the last billing period . . .." 10. The Fee Agreement also provides that"invoices are due upon receipt and must be paid within thirty (30) days unless other acceptable arrangements are made in advance. We reserve the right to charge interest at 1'/2%per month for any invoices not paid within sixty (60) days of the date of the invoice." 11. The Fee Agreement also provides for attorney's fees and costs of collection as follows: "should it be necessary for us to take legal action to collect any overdue invoices, you will also be responsible for any and all costs of collection, including, without limitation, reasonable attorneys fees and expenses." 3 12. The Fee Agreement also provides, "It is imperative, under the terms of this agreement, that you notify us in writing of any disputed billing within 15 days of your receipt of a bill. If we do not receive written notice within 15 days, the Parties agree that the amount of the bill can no longer be disputed and that said amount is due and owing." 13. At no time did either Defendant advise Capozzi to terminate the services or dispute the receipt of monthly Invoices from Capozzi for work performed. 14. Capozzi,at the special insistence and request of Defendants on numerous occasions during the period of April 2012 through the present, provided legal services to Defendants on or about the dates set forth in Capozzi's business records (the "Account Invoices" or "Client Ledgers"). 15. The specific legal services performed by Capozzi are more fully described in the Account Invoices and Client Ledgers. True and correct copy of the Notice incorporated all monthly Invoices is attached hereto as Exhibit"C." The Legal Services Performed. 16. Capozzi provided to Defendants monthly invoices for the legal services provided and fees and costs associated with the Appeal of the Pennsylvania Department of Public Welfare's (DPW's) Denial of Medicaid Program Enrollment for Amy M. Frick (Matter No. 262-12) in the total principal amount of$3,686.34. True and correct copies of the Appeal of DPW's Denial Invoices and Client Ledger are attached hereto and incorporated herein as Exhibit "D." 17. Capozzi provided to Defendants monthly invoices for the legal services provided and fees and costs associated with the Year 17 Medicaid Case Mix Rate and Peer Group Price Appeal for the nursing facility, Osprey Ridge, (Matter No. 420-12)in the total principal amount of $900.00. True and correct copies of the Appeal Invoices and Client Ledgers are attached hereto 4 and incorporated herein as Exhibit"E." 18. Capozzi provided to Defendants monthly invoices for the legal services provided and fees and costs associated with the sale of the nursing facility, Mallard Meadows (Matter No. 249-13) in the total principal amount of$730.50. True and correct copies of the related Invoices and Client Ledgers are attached hereto and incorporated herein as Exhibit"F." 19. Capozzi provided to Defendants monthly invoices for the legal services provided and fees and costs associated with the Mallard Meadows Appeal of DPW's Notice of Fine and Ban on Admissions (Matter No. 631-12) in the total principal amount of$542.00. True and correct copies of the Appeal Invoices and Client Ledgers are attached hereto and incorporated herein as Exhibit"G." 20. Capozzi provided to Defendants monthly invoices for the legal services provided and fees and costs associated with the possible sale of Osprey Ridge (Matter No. 537-12) in the total principal amount of$3,019.78. True and correct copies of the related Invoices and Client Ledgers are attached hereto and incorporated herein as Exhibit "H." 21. Capozzi provided to Defendants monthly invoices for the legal services provided and fees and costs associated with the Appeal of Medicare Preclusions to U.S. District Court (Matter No. 244-12) in the total principal amount of$4,180.12. True and correct copies of the Appeal Invoices and Client Ledgers are attached hereto and incorporated herein as Exhibit "I." 22. Capozzi provided to Defendants monthly invoices for miscellaneous legal services provided(Matter No. 261-12) in the total principal amount of$4,517.56. True and correct copies of the related Invoices and Client Ledgers are attached hereto and incorporated herein as Exhibit 44J.» 5 COUNT I—BREACH OF CONTRACT Reflection Lifecare Group 23. Plaintiff repeats and alleges the prior allegations of this Complaint as if fully set forth at length. 24. Pursuant to the terms of the Fee Agreement, Reflection Lifecare Group had a duty to remit payment within 30 days of receipt of Invoices. 25. The rates and prices charged as set forth in the Account Invoices are the fair and reasonable charges for the services rendered, are the customary charges of Capozzi in similar cases, and are the charges that Defendant agreed to pay for the various legal services itemized below. 26. The total amount of unpaid Account Invoices for the matters and during the periods referenced above is $17,616.30, plus interest and costs of collection. 27. Capozzi performed all requested legal services and achieved positive results for Reflection Lifecare Group as expected under the terms of the Fee Agreement. 28. All of the legal services included in the Account Invoices were billed at the rates agreed to as described in the Fee Agreement. 29. Capozzi presented its claims for payments on a monthly basis to Reflection Lifecare Group pursuant to the terms of the Fee Agreement. 30. On numerous occasions, Capozzi contacted Reflection Lifecare Group for payment for the unpaid Account Invoices. True and correct copies of the attorney's demand letters are attached hereto and incorporated herein as Exhibit"K." 31. Reflection Lifecare Group did not dispute any of the monthly Invoices or terminate the attorney-client relationship between Capozzi and Reflection Lifecare Group until Capozzi became more assertive in attempt to collect the debts owed. 6 t 32. To date, Reflection Lifecare Group has failed and refused to remit payment toward the remaining Account Invoices. 33. Reflection Lifecare Group's failure to cure the default with Capozzi upon demand constitutes a breach of contract. WHEREFORE, Plaintiff, Capozzi Adler, P.C., demands judgment against Reflection Lifecare Group in the sum of$17,616.30, plus interest at the rate of 1'/z% per month on all delinquent amounts, plus costs of collection, all of which are per the terms of the contract between the parties, which sum is within the jurisdictional amount for compulsory arbitration. COUNT II—BREACH OF IMPLIED CONTRACT Donna M. Salko If this Honorable Court should find that an express contract did not exist between Capozzi Adler, P.C. and Defendant, which is denied, then, in that event, Capozzi Adler pleads the following alternative count in Breach of Implied Contract against the Defendant: 34. Plaintiff repeats and alleges the prior allegations of this Complaint as if fully set forth at length. 35. On April 8, 2013, Defendant Salko signed a verification attached to a Request for Hearing and Declaratory Relief stating Capozzi represents Donna M. Salko individually and in her capacity as President of Osprey Ridge Healthcare Center, Inc. A true and correct copy of the Verification is attached hereto and incorporated herein as Exhibit"L." 36. On or about November 12,2012,Defendant Salko mailed a letter to the Department of Public Welfare which states, "as of June 17, 2011 . . . Reflection Lifecare Group, was owned entirely by Donna M. Salko." A true and correct copy of the letter is attached hereto and incorporated herein as Exhibit "M." 7 c 37. Defendant's specific requests to the attorneys at Capozzi Adler, P.C. for legal assistance, Capozzi's acceptance, and the written documents referenced in Exhibits L and M constitute the existence of an implied contract for legal services between Capozzi and Defendant. 38. Capozzi's expectation of payment for legal services is reasonable and Defendant knew that she would be expected to pay for the legal services rendered. 39. Capozzi demanded payment from Defendant, as referenced in"Exhibit K", and Defendant refused to render payment and continues to do so. 40. Capozzi, as a result of the implied contract, is entitled to compensation for legal services rendered and costs incurred on behalf of Defendant. 41. Capozzi has been damaged by the refusal of Defendant to pay for legal services rendered in breach of the implied contract in the amount of$17,616.30, plus interest at the rate of 1'/2 %per month, plus costs. WHERFORE, Plaintiff Capozzi Adler, P.C. demands judgment against Defendant in the sum of$17,616.30, plus interest at the rate of 1'/2 % per month on all delinquent amounts, plus court costs, which sum does not exceed the jurisdictional limit for compulsory arbitration. COUNT III—QUANTUM MERUIT (UNJUST ENRICHMENT) Reflection Lifecare Group and Donna M. Salko If this Honorable Court should find that a contract did not exist between Capozzi and Reflection Lifecare Group and Donna Salko, which is denied, then, in that event, Capozzi pleads the following alternative count in quantum meruit against Reflection Lifecare Group and Donna Salko: 42. Plaintiff repeats and alleges the prior allegations of this Complaint as if fully set forth at length. 43. Capozzi provided legal services at the request of Donna M. Salko to represent her 8 individually and in her capacity as owner or officer of her nursing facilities. 44. On April 8, 2013, Defendant Salko signed a verification attached to a Request for Hearing and Declaratory Relief stating Capozzi represents Donna M. Salko individually and in her capacity as President of Osprey Ridge Healthcare Center, Inc. A true and correct copy of the Verification is attached hereto and incorporated herein as Exhibit "L." 45. On or about November 12,2012,Defendant Salko mailed a letter to the Department of Public Welfare which states, "as of June 17, 2011 . . . Reflection Lifecare Group, was owned entirely by Donna M. Salko." A true and correct copy of the letter is attached hereto and incorporated herein as Exhibit"M." 46. Upon information and belief, Defendant Salko was the President and owner of Mallard Meadows Residential Center at all times relevant to this civil action. 47. Upon information and belief, Defendant Salko was the President and owner of Osprey Ridge Healthcare and Rehabilitation Center at all times relevant to this civil action. 48. Having requested Capozzi to provide the legal services and Capozzi having done so to the benefit of Reflection Lifecare Group and Donna Salko, the Defendants became liable to Capozzi for the fair and reasonable charges for the legal services provided. 49. Defendants have been unjustly enriched by accepting the legal services of Capozzi without terminating the attorney-client relationship. 50. Capozzi demanded that Defendants pay $17,616.30 as compensation, but Defendants have failed to do so. 51. To date, Defendants have not paid the total amount due. WHEREFORE, Plaintiff, Capozzi Adler, P.C., demands judgment against Defendants in the amount of$17,616.30, plus interest at the legal rate of 6%per annum on all delinquent 9 amounts, which sum is within the jurisdictional amount for compulsory arbitration. COUNT IV- PIERCING THE CORPORATE VEIL Donna M. Salko 52. Plaintiff repeats and alleges the prior allegations of this Complaint as if fully set forth at length. 53. Pursuant to a November 12, 2012 letter to the Department of Public Welfare, attached as Exhibit "M", " As of June 17, 2011 . . . Reflection Lifecare Group, was owned entirely by Donna M. Salko." 54. Upon information and belief, Defendant Salko treats the assets of Reflection Lifecare Group as her own, including the financial benefits from Capozzi's efforts. 55. Upon information and belief, Defendant Salko has used corporate funds to pay her private debts. 56. Upon information and belief, Defendant Salko has failed to keep separate corporate books. 57. Upon information and belief, Defendant Salko has failed to observe corporate formalities. 58. Upon information and belief, Defendant Salko has failed to provide adequate capitalization for the corporation to pay potential liabilities, including but not limited to paying of legal fees incurred with Capozzi. 59. Upon information and belief, Reflection Lifecare Group does not currently have enough unencumbered capital to pay its potential liabilities. 60. Upon information and belief, Reflection Lifecare Group is currently organized solely for the purpose of avoiding Defendant Salko's personal liabilities. 10 61. It is necessary to pierce the corporate veil of Reflection Lifecare Group in order to prevent Defendant Salko from using the corporate form of Reflection Lifecare Group to avoid her personal obligations. 62. The piercing of the corporate veil of Reflection Lifecare Group is necessary to prevent fraud upon Capozzi. 63. Recognizing the corporate form of Reflection Lifecare Group would shield Donna Salko from liability for her fraudulent representations and conduct with Capozzi. 64. Under the circumstances, it would be inequitable for Donna Salko to shield her fraudulent actions with the corporate veil. 65. Capozzi relied on Defendant Donna Salko's representations. 66. Capozzi suffered financial harm in the amount of$17,616.30 as a direct result of Defendant Salko's conduct. WHEREFORE, Plaintiff requests this Court to pierce the corporate veil of Reflection Lifecare Group and hold Defendant Salko, personally liable for the judgment entered in this civil action. Respectfully submitted, CAPOZZI ADLER, P.C. Date: By: — Marc A. um, Esquire AttornV I.D. No. 91273 Capo zi Adler, P.C. PSY Box 5866 Harrisburg, PA 17110 (717) 233-4101 Attorney for Plaintiff 11 CAPOZZI ADLER, P.C. f/k/a IN THE COURT OF COMMON PLEAS OF CAPOZZI & ASSOCIATES, P.C., CUMBERLAND COUNTY, PENNSYLVANIA A Pennsylvania Professional Corporation Plaintiff V. Docket No.: REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP, and DONNA M. SALKO, Defendants Civil Action - Law VERIFICATION I, Andrew R. Eisemann, Esquire, do hereby verify that the facts made in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I understand that any false statements therein are subject to the penalties contained in Title 18 of the Pennsylvania Consolidated Statutes Section 4904, relating to unsworn al ificat' o authorities. Date: v � ` ,is nn,' squire Attorney I.D. o. 8 41 Capozzi Adler, .C. P.O. Box 5866 Harrisburg, PA 17110 (717) 233-4101 Attorney for Plaintiff Business Entity Page 1 of 1 pennsyLvania DEPARTMENT OF STATE §- nti� �• PA Corporations Online Services I Corporations I Forms I Contact Corporations I Business Services Search Business Entity Filing History By Business Name Date:517/2014 (Select the link above to view the Business By Business Entity ID Entity's Filing History) Verify -- -- — -------- �._._�— ——---- Verify Certification Online Orders Register for Online Business Name History Orders Order Good Standing Name Name Type Order Certified Documents Reflection Lifecare Group,Inc. Current Name Order Business List My Images Search for Images Business Corporation-Domestic-Information Entity Number: 3873631 Status: Active Entity Creation Date: 4/6/2009 State of Business.: PA Registered Office Address: 37 Honesdale Road Carbondale PA 18407 Lackawanna Mailing Address: No Address Officers Name: DONNA M SALKO Title: President Address: 37 HONESDALE RD CARBONDALE PA 18407-1431 Copyright©2002 Pennsylvania Department of State.All Rights Reserved. Privacy Policy I Security Policy EXHIBIT https://www.corporations.state.pa.us/corp/soskb/Corp.asp?2744378 Lotuis'J.Capozzi,Jr.,Esquire* 1200 Camp Hill Bypass ' ,)aniel K'.Natirboff,Esquire � q UP0 :i & Associates, 1-.C. Camp Hill,PA 17011 Donald R.Reavey,Esquire Craig I.Adler,Esquire** tt01°72F S Clt Law Mailing Address:P.O.Box 5866 Andrew R.Eisemann,EsauireV Harrisburg,PA 17110 Bruce G.Baron,Esquire Dawn L.Richards,Esquire Telephone:(717)233-4101 Philip C.Warholic,Esquire Facsimile:(717)233-4103 Matthew A.Thomsen,Esquire** $' q www.capozziassociates.com Brandon S.Williams,Esquire Paul R.Van Fleet,Esquire Timothy Ziegler,Sr.Reimb.Analyst Mid-Penn Abstract Company Erin E. Motter,Jr.Reimb Analyst Charter Settlement Company Karen L. Fisher,Paralegal Telephone:(717)234-3289 Keyoung J.Gill,Paralegal Facsimile:(717)234-1670 Gwenn M.Keene,Paralegal *(Licensed in PA,NJ and MD) **(Licensed in PA and NJ) April 26, 2012 Dr. Gregory J. Salko, MD Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 Re: Letter of Representation Appeal of Denial of MA Program Enrollment for Amy M.Frick, CRNP; Appeal of Denial of MA Program Enrollment for Dr.Gregory Salko; Appeal of the Final Determination of the DHHS/DAB Challenging Dr. Gregory Salko's Preclusion from Participation in Federal Health Care Programs; and Possible Sale of Stock Our Matter Numbers: 262-12,206-12; 244-12 and 235-12 Dear Dr. Salko: Our rules of professional ethics require us to set forth our fee arrangement in writing at the commencement of a professional relationship. This letter will describe the scope of services to be provided, the basis for determining the fees for those services and our general terms and conditions for billing. Scope of Representation The legal services to be provided by Capozzi & Associates, P.C.to Reflection Lifecare Group are in connection with the following matters: (1) an appeal currently pending before the Department of Public Welfare's Bureau of Hearings and Appeals, docketed at#036-11-0003,regarding the MA Program Denial of Enrollment for Amy Marie Frick; (2) an appeal currently pending before the Department of Public Welfare's Bureau of Hearings and Appeals and docketed at#036-10-0005,regarding the MA Program Denial of Enrollment for Dr. Gregory Salko; (3) an appeal to the U.S.District Court for the Middle District of Pennsylvania appealing the final determination of the Department Appeals Board of the US Department of Health and Human Services regarding Dr. Salko's preclusion from participation in federal health care programs; and (4) the possible stock sale of three of your health care facilities. EXHIBIT In addition to the representation described above,you may from time to time ask us to perform additional legal work or undertake your representation in other matters. This letter constitutes your authorization for our Firm to perform the additional legal work or represent you in other matters. We customarily assign the responsibility of coordinating all aspects of our representation of a particular client to one attorney designated the"client coordinator". All work requests are channeled through that professional,who is then responsible for coordinating all work assignments. Of course, we encourage direct communication with the individual attorney(s)working on a particular project. The client coordinator also is responsible for billing and responding to all questions relating to client fees and our representation. Louis J. Capozzi,Jr.,Esquire will be performing the role of client coordinator for you. Basis for Determining Fees Fees and costs will be billed to Reflection Lifecare Group for these matters on an hourly basis. Each attorney and professional staff member in our office prepares accurate and daily time records for each file on which they work. Hourly rates are determined periodically by our office, generally each year, and will vary according to the attorney who provides the services and the type of services requested. A schedule of current hourly rates in effect for our attorneys and professional staff members are enclosed with this letter. There is a minimum charge of three-tenths of an hour for phone communications,five-tenths of an hour for review of pleadings, correspondence, or other legal documents, and two hours for the preparation of pleadings and discovery requests and responses. Travel time is from portal to portal. Should the scope of services to be provided be changed or enlarged beyond those described in this letter,we reserve the right to amend or supplement this letter and the fees charged for the change or increase in the scope of services. We bring a team approach to our work product which is designed to provide economically efficient and effective representation by matching the hourly rates and experience of our attorneys to the professional requirements of a particular matter. Where appropriate,we attempt to utilize paralegals for more routine and repetitive matters with the goal of reducing the overall cost without sacrificing any quality in the product. Billing Terms and Conditions Periodic Invoices. Our firm sends periodic invoices,usually monthly, detailing services rendered during the last billing period plus costs and fees which were advanced on your behalf, such as filing fees, outside reproduction, express mail fees,computerized research costs,any expert or consultant fees incurred on your behalf and travel expenses. There is no charge for in-house photocopying,telephone,telecopier (fax),and postage. Invoices are due upon receipt and must be paid within thirty(30)days unless other acceptable arrangements are made in advance. We reserve the right to charge interest at 1 ''/z% per month for any invoices not paid within sixty(60) days of the date of the invoice. In addition, should it be necessary for us to take legal action to collect any overdue invoices,you will also be responsible for any and all costs of collection including,without limitation,reasonable attorneys fees and expenses. Such reasonable attorney's fees shall include time spent by attorneys employed by this Firm at their usual hourly rates. In addition,the Parties agree that venue, in the event legal action is necessary, is proper in Cumberland County. In connection with collection of a judgment, settlement or other disposition of a case on your behalf, the Firm is authorized to receive and endorse for deposit to our escrow account any checks, drafts, money Y ' ' orders or other forms of payment whether or not made payable to the Firm,and to disburse the proceeds, including attorney's fees and costs, in accordance with the terms of this letter. It is specifically agreed that the proceeds may be applied to any past due account even if the past due account has no relationship to the matter for which the proceeds were collected. Credit Hold. Should any invoice for fees and costs remain unpaid for a period in excess of sixty(60) days, consistent with our responsibilities under the Rules of Professional Conduct,we reserve the right to temporarily cease work on this engagement until such overdue fees and costs are paid in full or, if our invoices remain unpaid despite efforts at collecting the same, we reserve the right to terminate the representation. Retainer. No additional retainers will be required for these matters. Disputed Billing: It is imperative, under the terms of this agreement,that you notify us in writing of any disputed billing within 15 days of your receipt of a bill. If we do not receive written notice within 15 days,the Parties agree that the amount of the bill can no longer be disputed and that said amount is due and owing. UCC Lien. For value received for undisputed legal services, as described above, and after default of this Fee Agreement in excess of 60 days, intending to be legally bound hereby,you hereby grant and assign and you agree that Capozzi &Associates,P.C. shall have, and there is hereby created in favor of Capozzi & Associates,P.C.,a security interest in your tangible and intangible personal property,now or hereafter in existence, including the proceeds thereof and the increases, substitutions, replacements, additions, and accessions thereto, hereinafter referred to collectively as the"Collateral,"to secure that certain obligation of you owed to Capozzi &Associates,P.C. after the declaration of Default of this Fee Agreement. In addition to all rights and remedies given to Capozzi &Associates, P.C. by this Security Agreement, Capozzi & Associates, P.C. shall have all the rights and remedies of a secured party under the Pennsylvania Uniform Commercial Code. I authorize Capozzi &Associates,P.C. to file a financing statement covering the Collateral. Reproduction of Complete File.In the event that you request a complete copy of your file or your file in its entirety, it is understood that you will pay a copy charge of.10 cents per copy and all time spent by our staff and attorneys, at their usual hourly rates, for gathering the file and insuring the requested copy is complete.The above paragraph is applicable even if you request your original file because we must keep a copy for our records. CONFESSION OF JUDGMENT.THE UNDERSIGNED HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT OF RECORD WITHIN THE UNITED STATES OF AMERICA OR ELSEWHERE TO APPEAR FOR THE UNDERSIGNED AND, WITH OR WITHOUT COMPLAINT FILED, CONFESS JUDGMENT AGAINST THE UNDERSIGNED IN FAVOR OF ANY HOLDER HEREOF,UPON THE OCCURRENCE OF AN EVENT OF DEFAULT,AS HEREINABOVE DEFINED, FOR THE UNPAID BALANCE OF UNDISPUTED LEGAL FEES,AS DESCRIBED ABOVE, TOGETHER WITH UNPAID INTEREST THEREON, COSTS OF SUIT AND ATTORNEY'S FEES,AS DESCRIBED ABOVE, ON WHICH JUDGMENT ONE OR MORE EXECUTIONS MAY ISSUE FORTHWITH. THE UNDERSIGNED HEREBY FOREVER WAIVES AND RELEASES ALL ERRORS IN SAID PROCEEDINGS, WAIVES STAY OF EXECUTION, AND WAIVES ALL EXEMPTIONS FROM LEVY AND SALE OF ANY PROPERTY THAT NOW ARE OR HEREAFTER MAY BE APPLICABLE.NO SINGLE EXERCISE OF THE FOREGOING POWER TO CONFESS JUDGMENT SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE VALID,VOIDABLE OR VOID,BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS D THE HOLDER HEREOF SHALL ELECT UNTIL SUCH TIME AS THE HOLDER SHALL HAVE RECEIVED PAYMENT IN FULL OF THE DEBT, INTEREST, ATTORNEY'S FEES AND COSTS. INTEREST ON THE OBLIGATION EVIDENCED HEREBY SHALL CONTINUE TO ACCRUE AT THE ABOVE-STATED RATE AFTER THE ENTRY OF JUDGMENT HEREON. THE UNDERSIGNED HEREBY WAIVES ITS RIGHTS TO NOTICE AND A HEARING CONCERNING THE VALIDITY OF THE HOLDER'S CLAIMS HEREUNDER AND AGREES AND CONSENTS TO JUDGMENT BEING ENTERED BY CONFESSION IN ACCORDANCE WITH THE TERMS HEREOF AND EXECUTION BEING LEVIED ON SUCH JUDGMENT AGAINST ANY AND ALL PROPERTY OF THE UNDERSIGNED, IN EACH CASE WITHOUT FIRST BEING GIVEN NOTICE AND THE OPPORTUNITY TO BE HEARD ON THE VALIDITY OF THE CLAIM OR CLAIMS UPON WHICH SUCH JUDGMENT IS ENTERED. Attorney's Lien.As provided by Pennsylvania law,we will retain an attorney's lien for payment on all files and other documents and materials collected or generated by this firm in the course of this representation, and reserve the right to retain those files and other materials until paid in full. If, at any time during the course of our professional relationship,you have any questions regarding our services or our fees,please raise them with me. We strongly encourage open and frank discussions about our work product and fees. We find that good communication enhances our professional relationship with our clients and facilitates our ability to address effectively and economically the legal challenges facing them. If these terms are acceptable to you, please sign this letter and return it to us in the enclosed self- addressed, stamped envelope. The enclosed copy of this letter is for your records. We thank you for the opportunity to continue to perform legal services for White Crossing Medical Group, and we look forward to continuing to work with you. Sincerely, Louis J. Capozzi,Jr.,Esquire /klf Enclosure Accepted By: b . re o6 Sa ko Refl tion Lifecare Group Date: 7 Z� CAPOZZI & ASSOCIATES, P. C. 2012 Hourly Rates for Attorneys and Professional Staff Members Louis J. Capozzi,Jr. Esquire $275 Daniel K. Natirboff, Esquire $275 Donald R. Reavey, Esquire $275 Craig I. Adler, Esquire $275 Bruce G. Baron, Esquire $250 Andrew R. Eisemann, Esquire $210 Andrew R. Eisemann, Esquire $185 (Collection Matters) Dawe L. Richards, Esquire $200 Philip C. Warholic $175 (Collection Matters) Matthew A. Thomsen $175 Brandon S. Williams $195 Brandon S. Williams $175 (Collection Matters) Paul R. Van Fleet $175 Timothy T. Ziegler, Reimbursement Analyst $220 Erin Motter, Analyst $150 Law Clerks $ 90 Paralegals $ 90 Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Pax: 717-233-4103 Donna Salko As at May 7, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Aug-17-12 262-12 66219 96.00 26.89 0.00 122.89 > 120 days Sep-18-12 262-12 66680 75.00 19.82 0.00 94.82 > 120 days Oct-24-12 262-12 67218 271.00 66.82 0.00 337.82 > 120 days Nov-14-12 262-12 67847 1,195.00 282.28 0.00 1,477.28 > 120 days Dec-11-12 262-12 68214 2,049.34 456.81 0.00 2,506.15 > 120 days Jun-14-13 244-12 71432 58.36 7.68 0.00 66.04 > 120 days Jun-14-13 631-12 71433 27.50 3.62 0.00 31.12 > 120 days Jun -14-13 537-12 71434 2,147.03 282.70 0.00 2,429.73 > 120 days Jul -19-13 261-12 71898 1,203.30 137.67 0.00 1,340.97 > 120 days Jul-19-13 420-12 71899 580.00 66.36 0.00 646.36 > 120 days Jul -19-13 244-12 71952 2,398.76 274.44 0.00 2,673.20 > 120 days Jul -19-13 631-12 71953 161.00 18.42 0.00 179.42 > 120 days Jul -19-13 537-12 71954 778.63 89.08 0.00 867.71 > 120 days Aug-15-13 631-12 72512 330.00 33.36 0.00 363.36 > 120 days Aug-15-13 244-12 72513 807.50 81.63 0.00 889.13 EXHIBIT Aug-15-13 261-12 72514 110.00 11.12 0.00 121.12 ' Aug-15-13 537-12 72515 9.00 0.91 0.00 9.91 > 120 days Aug-15-13 249-13 72516 9.00 0.91 0.00 9.91 > 120 days Sep-16-13 631-12 73047 23.50 2.00 0.00 25.50 > 120 days Sep-16-13 244-12 73048 476.00 40.61 0.00 516.61 > 120 days Sep-16-13 261-12 73049 715.00 61.00 0.00 776.00 > 120 days Sep-16-13 537-12 73050 22.12 1.89 0.00 24.01 > 120 days Sep-16-13 249-13 73051 330.00 28.15 0.00 358.15 > 120 days Oct-18-13 244-12 73570 439.50 30.56 0.00 470.06 > 120 days Oct-18-13 261-12 73571 216.00 15.02 0.00 231.02 > 120 days Oct-18-13 537-12 73572 63.00 4.38 0.00 67.38 > 120 days Oct-18-13 249-13 73573 309.00 21.49 0.00 330.49 > 120 days Nov-19-13 261-12 74127 137.50 7.39 0.00 144.89 > 120 days Nov-19-13 420-12 74128 320.00 17.20 0.00 337.20 > 120 days Dec-10-13 261-12 74616 620.50 26.93 0.00 647.43 > 120 days Jan-16-14 261-12 75113 1,515.26 38.11 0.00 1,553. 7 <=120 days Jan-16-14 249-13 75114 82.50 2.07 0.00 84.57 <=120 days Mar-12-14 420-12 76160 40.00 0.00 0.00 40.00 <=60 days Totals $17,616.30 $2,157.32 $0.00 $19,773.62 Balance Due and Owing $19,773.62 Your account is past due. If you require copies of any of the invoices listed above, please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent, please disregard this notice. Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: 717-233-4103 Donna Salko As at Jan 22, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Aug-17-12 262-12 66219 96.00 21.92 0.00 117.92 > 120 days Sep-18-12 262-12 66680 75.00 15.94 0.00 90.94 > 120 days Oct-24-12 262-12 67218 271.00 52.79 0.00 323.79 > 120 days Nov-14-12 262-12 67847 1,195.00 220.40 0.00 1,415.40 > 120 days Dec-11-12 262-12 68214 2,049.34 350.69 0.00 2,400.03 > 120 days Totals $3,686.34 $661.74 $0.00 $4,348.08 Balance Due and Owing $4,348.08 Your account is past due. If you require copies of any of the invoices listed above,please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent,please disregard this notice. EXHIBIT Capoz# d 866, PC Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko August 17, 2012 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 262-12 Inv #: 66219 RE: CLOSED.Appeal of DPW's Denial of MA Program Enrollment for Amy M Frick DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jul-I1-12 Communicate with Robert Duplessis re status 0.30 75.00 BGB of matter; e-mail to DPW Counsel re same Jul-31-12 Strategy and status conference with Bruce 0.10 21.00 ARE Baron re DPW Position Paper and possibility of Settlement Totals 0.40 $96.00 Total Fees & Disbursements $96.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz#s d866, P.C. Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko September 18, 2012 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 262-12 Inv #: 66680 RE: CLOSED.Appeal of DPW's Denial of MA Program Enrollment for Amy M Frick DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Aug-08-12 Review DPW Position Paper,with copies to 0.30 75.00 BGB client and to Robert Duplessis and status update to Dr. Salko Totals 0.30 $75.00 Total Fees & Disbursements $75.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Cap gz#Ad Box 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko October 24, 2012 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 262-12 Inv #: 67218 RE: CLOSED.Appeal of DPW's Denial of MA Program Enrollment for Amy M Frick DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Sep-13-12 Communicate with DPW Counsel re Motion 0.50 125.00 BGB for Pre-Hearing Conference and current DPW Position on Settlement with copies to client and to Robert Duplessis Sep-19-12 Review Notice of Pre-Hearing Conference and 0.50 125.00 BGB e-mail to client and Bob Duplessis re same; communicate with Dr. Salko re analysis of DPW Argument against Relief; sign care to BHA to confirm participation in PHC Sep-22-12 Strategy and Status Conference with Bruce 0.10 21.00 ARE Baron re preparation for Pre-Hearing Conference Totals 1.10 $271.00 Total Fees & Disbursements $271.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz#s d866, PCS Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717)233-4103 EIN #: 23-2911821 Donna Salko November 14, 2012 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 262-12 Inv #: 67847 RE: CLOSED.Appeal of DPW's Denial of MA Program Enrollment for Amy M Frick DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Oct-03-12 Pre-Hearing Conference to schedule case for 1.00 250.00 BGB Hearing; e-mail to client and Robert Duplessis re same and need to coordinate with witnesses; prepare for same Oct-09-12 Communicate with Amy Frick re preparation 0.10 25.00 BGB of witnesses for November Hearing Oct-10-12 Review of Hearing Schedule Order from 0.10 25.00 BGB Bureau of Hearings and Appeals Oct-11-12 E-mail to Karen Fisher re preparation of 0.10 25.00 BGB witness and exhibit lists for Hearing Oct-12-12 Review of/draft e-mails re possible Settlement 1.00 275.00 LJC Agreement/Settlement terms Review draft witness and exhibit lists; sign 0.30 75.00 BGB and prepare for filing with BHA Draft Initial Witness List and Initial Exhibit 4.50 405.00 KF List; prepare exhibits; file and serve both documents with attachments Oct-22-12 Review Notice of ALJ appointed for Hearing 0.10 25.00 BGB Oct-25-12 Research for Hearing 0.30 75.00 BGB 1. Invoice#: 67847 Page 2 November 14, 2012 Totals 7.50 $1,180.00 DISBURSEMENTS Disbursements Receipts Oct-12-12 Courier Charges 15.00 Totals $15.00 $0.00 Total Fees & Disbursements $1,195.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capgz# id 866, P.C. Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko December 11, 2012 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 262-12 Inv #: 68214 RE: CLOSED.Appeal of DPW's Denial of MA Program Enrollment for Amy M Frick DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Nov-13-12 Review of Notices of Subpoena 0.50 100.00 DLR Draft Application for Subpoenas; serve and 2.70 243.00 KF file same Nov-15-12 E-mail to Amy Frick re status of her 1.00 250.00 BGB discussions with her proposed witnesses; telephone call from Dr. Oreheck re concerns about being a witness; telephone call from Rebecca Schoonover re receipt of subpoena and preparing for Hearing; e-mail to Amy Frick re concerns expressed by Dr. Oreheck Nov-16-12 E-mail from Karen Fisher re message from 0.10 25.00 BGB telephone call from Lisa Rusch re prepare for being witness at hearing Telephone call from Lisa Rusch regarding her 0.30 27.00 KF testimony at the 11/27/12 Hearing Nov-19-12 Office conference with Karen Fisher re service 0.10 25.00 BGB of subpoenas; telephone call to Amy Frick (no answer)re prepare for hearing Telephone call to client regarding 11/27/12 0.50 45.00 KF Hearing; serve subpoenas on Dr. Moran, Dr. Dyplessis and Peter Garcia for Rosemary Vogel Invoice#: 68214 Page 2 December 11, 2012 Nov-20-12 Telephone call to Amy Frick re preparing for 0.10 25.00 BGB case (left voicemail) Nov-21-12 Office conference with Karen Fisher re 0.30 75.00 BGB Notices to potential witnesses about Hearing and checking with DPW Counsel about his witnesses; telephone call to Amy Frick(left message with receptionist)for her to contact me re same Nov-23-12 Telephone calls from Amy Frick and Dr. 1.00 250.00 BGB Moran re prepare for hearing; office conference with Karen Fisher re same Communicate with Rebecca Schoonover, Lisa 1.70 153.00 KF Rusch, and Robert Duplessis regarding receipt of Subpoena and inform each that their testimony will not be required for the November 27th Hearing; Prepare exhibits for 11/27/12 Hearing Nov-26-12 Telephone calls from Amy Frick re prepare for 1.00 250.00 BGB hearing; office conference with Karen Fisher re exhibits for same; prepare for hearing and questions for witnesses Telephone call to Dr. Orehek re testimony for 0.30 27.00 KF November 27 hearing Nov-27-12 Communicate with Amy Frick re going 2.00 500.00 BGB forward with hearing; telephone call to same re same; communicate with same confirming authority to withdraw appeal; e-mail to DPW Counsel re withdrawal of appeal with copy to Louis Capozzi Jr.; e-mails to Louis Capozzi Jr. re same; letter to BHA with withdrawal of appeal and cancellation of hearing, with copies to Amy Frick and DPW Counsel and witnesses at BHA re withdrawal of appeal; telephone call to Dr. Salko on status Totals 11.60 $1,995.00 DISBURSEMENTS Disbursements Receipts Nov-13-12 Courier Charge 15.00 Nov-30-12 11/20 -Delivery Charge to R. Duplessis 19.67 11/20 -Delivery Charge to Kurt Moton, MD 19.67 Invoice#: 68214 Page 3 December 11, 2012 Totals $54.34 $0.00 Total Fees & Disbursements $2,049.34 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: 717-233-4103 Donna Salko As at Jan 22, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Jul-19-13 420-12 71899 580.00 36.33 0.00 616.33 > 120 days Nov-19-13 420-12 74128 320.00 0.63 0.00 320.63 <=90 days Totals $900.00 $36.96 $0.00 $936.96 Balance Due and Owing $936.96 Your account is past due. if you require copies of any of the invoices listed above,please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent,please disregard this notice. EXHIBIT i Capgz# d 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko July 19, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 420-12 Inv #: 71899 RE: Osprey Ridge Year 17 Case Mix Rate and Peer Group Price Appeal DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jun-06-13 Drafted Joint Motion for Stay of Year 17 Cases 0.20 40.00 MAT pending resolution of the cases currently before the Commonwealth Court(regarding appealability of underlying audits through Case-Mix Rate Appeal) Jun-25-13 Started rough draft of Position Paper for Year 2.70 540.00 MAT 17 (FYE 6/30/12) Case-Mix Rate Appeal Totals 2.90 $580.00 Total Fees & Disbursements $580.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz# 4866, P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717)233-4103 EIN #: 23-2911821 Donna Salko November 19, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 420-12 Inv #: 74128 RE: Osprey Ridge Year 17 Case Mix Rate and Peer Group Price Appeal DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Oct-11-13 Continued drafting Position Paper for Year 17 1.60 320.00 MAT Case-Mix Rate Appeal Totals 1.60 $320.00 Total Fees & Disbursements $320.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You CapoZzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: 717-233-4103 Donna Salko As at Jan 22,2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Aug-15-13 249-13 72516 9.00 0.44 0.00 9.44 > 120 days Sep-16-13 249-13 73051 330.00 11.07 0.00 341.07 > 120 days Oct-18-13 249-13 73573 309.00 5.49 0.00 314.49 <=120 days Jan-16-14 249-13 75114 82.50 0.00 0.00 82.50 <=30 days Totals $730.50 $17.00 $0.00 $747.50 Balance Due and Owing $747.50 Your account is past due. If you require copies of any of the invoices listed above,please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent,please disregard this notice. EXHIBIT Capgz#Ad 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko August 15, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 249-13 Inv #: 72516 RE: Sale of Mallard Meadows DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jul-08-13 Communicate with Bruce Baron regarding 0.10 9.00 KF status of application for Certificate of Compliance for Mallard Meadows; correspondence with Tara Pride, Director of Policy Totals 0.10 $9.00 Total Fees & Disbursements $9.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz# d 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko September 16, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 249-13 Inv #: 73051 RE: Sale of Mallard Meadows DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Aug-15-13 Review of/draft e-mails re Halko revised 0.50 150.00 LJC offer/next steps Aug-30-13 Review of/draft e-mails re sale of 0.60 180.00 LJC Mallard/Birch to Halko Totals 1.10 $330.00 Total Fees & Disbursements $330.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz5iB 4866, P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko October 18, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 249-13 Inv #: 73573 RE: Sale of Mallard Meadows DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Sep-16-13 Telephone call from Halko, coordinate site 1.00 300.00 CIA visit; telephone call to Hughes and Salko Sep-17-13 Receipt and review of correspondence from 0.10 9.00 KF Donna Salko Totals 1.10 $309.00 Total Fees & Disbursements $309.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz# 4 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko January 16, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 249-13 Inv #: 75114 RE: Sale of Mallard Meadows DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Dec-12-13 Communicate with Union re filing of their 0.30 82.50 BGB response to Exceptions to Hearing Officer Report,with copies to Louis Capozzi Jr., Brandon Williams, Karen Fisher, Jay Zelman and Greg Forsey Totals 0.30 $82.50 Total Fees & Disbursements $82.50 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: 717-233-4103 Donna Salko As at Jan 22, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Jun -14-13 631-12 71433 27.50 2.20 0.00 29.70 > 120 days Jul -19-13 631-12 71953 161.00 10.08 0.00 171.08 > 120 days Aug-15-13 631-12 72512 330.00 16.27 0.00 346.27 > 120 days Sep-16-13 631-12 73047 23.50 0.79 0.00 24.29 > 120 days Totals $542.00 $29.34 $0.00 $571.34 Balance Due and Owing $571.34 Your account is past due. If you require copies of any of the invoices listed above,please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent,please disregard this notice. EXHIBIT Capoz#s d866, P. C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717)233-4103 EIN #: 23-2911821 Donna Salko June 14, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 631-12 Inv #: 71433 RE: CLOSED. Mallard Meadows Appeal of DPW's Notice of Fine and Ban on Admissions DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER May-30-13 Communicate with Craig Adler re status of 0.10 27.50 BGB Halko transactions and documents for PCH license transfer Totals 0.10 $27.50 Total Fees & Disbursements $27.50 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capon# d 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko July 19, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 631-12 Inv #: 71953 RE: CLOSED. Mallard Meadows Appeal of DPW's Notice of Fine and Ban on Admissions DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jun-06-13 Communicate with Mark Myers re status of 0.30 82.50 BGB lease of Birch Hills and Mallard facilities, with copy to Craig Adler; communicate with Carol Clark re status of PCH application Jun-10-13 Office conference with Craig Adler re status of 0.10 27.50 BGB leases of PCH and Birch Hills site Jun-12-13 Office conference with Craig Adler re status of 0.10 27.50 BGB PCH license for Mallard Jun-23-13 Strategy and status conference with Bruce 0.10 23.50 ARE Baron re Lease to New Hope and Department of Public Welfare Requests Totals 0.60 $161.00 Total Fees & Disbursements $161.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You CapgZ#Ad 866, P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko August 15, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 631-12 Inv #: 72512 RE: CLOSED. Mallard Meadows Appeal of DPW's Notice of Fine and Ban on Admissions DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jul-08-13 Communicate with Mrs. Salko re status of 0.10 27.50 BGB Mallard PCH licensure; communicate with Carol Clark re same Jul-09-13 Communicate with Ron Halko re status of 0.50 137.50 BGB Mallard PCH application; communicate with Department of Public Welfare Counsel re status; communicate with Karen Fisher re Tara Pride's e-mail on status, with copy to Mrs. Salko Jul-10-13 Telephone call from Ron Halko re status of 0.50 137.50 BGB PCH license for Mallard Meadows; communicate with Mrs. Salko re same and end to resolve issues to avoid new litigation concerns with Department of Public Welfare, with copy to Craig Adler; office conference with Craig Adler re status Jul-22-13 Communicate with Bob Hughes re status of 0.10 27.50 BGB PCH License application Totals 1.20 $330.00 Invoice #: 72512 Page 2 August 15, 2013 Total Fees & Disbursements $330.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Cap Pz# 4 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko September 16, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 631-12 Inv #: 73047 RE: CLOSED. Mallard Meadows Appeal of DPW's Notice of Fine and Ban on Admissions DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Aug-24-13 Review status of lease deal and pending 0.10 23.50 ARE Purchase Agreements Totals 0.10 $23.50 Total Fees & Disbursements $23.50 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: 717-233-4103 Donna Salko As at Jan 22, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Jun-14-13 537-12 71434 2,147.03 171.53 0.00 2,318.56 > 120 days Jul-19-13 537-12 71954 778.63 48.77 0.00 827.40 > 120 days Aug-15-13 537-12 72515 9.00 0.44 0.00 9.44 > 120 days Sep-16-13 537-12 73050 22.12 0.74 0.00 22.86 > 120 days Oct-18-13 537-12 73572 63.00 1.12 0.00 64.12 <=120 days Totals $3,019.78 $222.60 $0.00 $3,242.38 Balance Due and Owing $3,242.38 Your account is past due. If you require copies of any of the invoices listed above,please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent,please disregard this notice. EXHIBIT Capoz# 4 866, P.C. Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko June 14, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 537-12 Inv #: 71434 RE: Possible Sale of Osprey Village DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER May-28-13 Office conference with Craig Adler re status of 1.00 275.00 BGB funds from closing and possible withdrawal as moot of Declaratory Judgment matter involving rent issues; draft forms for same Receipt and review of Order setting procedural 0.10 9.00 KF deadlines; calendar same May-29-13 Check policy for sale of Osprey Ridge to 78 0.40 80.00 PVF Acquisition Group; conference with Maya Druker on endorsements and lender's policy limit Communicate with Matt Jones, Esq. re status 2.00 550.00 BGB of pending Bureau of Hearings and Appeals appeals; letter to Department of Public Welfare Counsel for concurrence as to mootness of pending Declaratory Action on rent issues; office conference with Karen Fisher re filing same with Bureau of Hearings and Appeals; sign Bureau of Hearings and Appeals form re hearing on Supersedeas; research for Supersedeas Hearing Receipt and review of Order scheduling 0.10 9.00 KF telephone hearing; calendar same May-30-13 Prepare Transmittal of Exhibits and Pre 3.00 825.00 BGB Hearing statement for Supersedeas Hearing on Invoice#: 71434 Page 2 June 14, 2013 June 4, 2013; communicate with Mrs. Salko re same, with copies to Louis Capozzi Jr. and Craig Adler Receipt and review of correspondence from 0.70 63.00 KF Attorney Garcia; file and Serve Notice of Discontinuance for Appeal#006-13-0003; prepare exhibits for telephone hearing and file and serve Transmittal of Exhibits for Supersedeas Hearing Totals 7.30 $1,811.00 DISBURSEMENTS Disbursements Receipts May-30-13 Courier 15.00 Courier 15.00 May-31-13 Research 306.03 Totals $336.03 $0.00 Total Fees & Disbursements $2,147.03 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capon# d 866 PC Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko July 19, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 537-12 Inv #: 71954 RE: Possible Sale of Osprey Village DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jun-04-13 Telephone Hearing on Petition for Supersedeas 1.50 412.50 BGB and prepare for same; prepare for same; communicate with Mrs. Salko re grant of Supersedeas (as unopposed), with copies to Louis Capozzi Jr.,Andrew Eisemann, Craig Adler and Karen Fisher Jun-06-13 Review of Bureau of Hearings and Appeals 1.00 275.00 BGB Order ending Declaratory Judgment Matter; letter to Bureau of Hearings and Appeals to correct form of Order to indicate "Without Prejudice"; copies of letter to Mrs. Salko, Department of Public Welfare Counsel and Matt Jones, Esq.; communicate with Matt Jones, Esq. re same Jun-10-13 Receipt and review of e-mail to client 0.10 9.00 KF regarding status of appeal Jun-14-13 Receipt and review of Order Granting Request 0.20 18.00 KF for supersedeas and Order establishing discovery deadlines; calendar same Jun-20-13 Index Pleadings 0.20 18.00 KF Totals 3.00 $732.50 Invoice#: 71954 Page 2 July 19, 2013 DISBURSEMENTS Disbursements Receipts Jun-28-13 6/21 -Delivery Charge to Matthew C. Jones, 16.69 Esq. 6/12 -Delivery Charge to Mrs. Donna Salko 29.44 Totals $46.13 $0.00 Total Fees & Disbursements $778.63 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You _F Capgz#Ad 866, P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN 4: 23-2911821 Donna Salko August 15, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 537-12 Inv #: 72515 RE: Possible Sale of Osprey Village DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jul-01-13 Receipt and review of correspondence from 0.10 9.00 KF Attorney Garcia responding to Provider's Settlement Proposal of June 5, 2013 Totals 0.10 $9.00 Total Fees & Disbursements $9.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz# d 866 ' P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko September 16, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 537-12 Inv #: 73050 RE: Possible Sale of Osprey Village DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Aug-05-13 Receipt and review of correspondence from 0.20 18.00 KF Attorney Garcia regarding possible Settlement of Osprey Ridge/Donna Salko v. Bureau of Program Integrity/DPW; serve Provider's Request for Production of Documents Totals 0.20 $18.00 DISBURSEMENTS Disbursements Receipts Aug-31-13 Research 4.12 Totals $4.12 $0.00 Total Fees & Disbursements $22.12 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz# idler, P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko October 18, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 537-12 Inv #: 73572 RE: Possible Sale of Osprey Village DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Sep-11-13 Receipt and review of Office of Long Term 0.70 63.00 KF Living's Mandatory Initial Disclosures, First .Set of Interrogatories, First Request for Production of Documents and Responses to Provider's Request for Production of Documents; index discovery Totals 0.70 $63.00 Total Fees & Disbursements $63.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: 717-233-4103 Donna Salko As at Jan 22, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Jun-14-13 244-12 71432 58.36 4.66 0.00 63.02 > 120 days Jul-19-13 244-12 71952 2,398.76 150.23 0.00 2,548.99 > 120 days Aug-15-13 244-12 72513 807.50 39.82 0.00 847.32 > 120 days Sep-16-13 244-12 73048 476.00 15.96 0.00 491.96 > 120 days Oct-18-13 244-12 73570 439.50 7.80 0.00 447.30 <=120 days Totals $4,180.12 $218.47 $0.00 $4,398.59 Balance Due and Owing $4,398.59 Your account is past due. If you require copies of any of the invoices listed above,please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent,please disregard this notice. EXHIBIT Capoz# 4866, P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko June 14, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 244-12 Inv #: 71432 RE: Litigation-Appeal of Medicare Preclusion to US District Court DISBURSEMENTS Disbursements Receipts May-31-13 Research 58.36 Totals $58.36 $0.00 Total Fees & Disbursements $58.36 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz# d 866 , PC Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN 4: 23-2911821 Donna Salko July 19, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 244-12 Inv #: 71952 RE: Litigation-Appeal of Medicare Preclusion to US District Court DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jun-17-13 Communicate with Karen Fisher re date for 0.10 27.50 BGB Reply Brief in 3rd Circuit and sending Dr. Salko copy of Government Brief Receipt and review of Brief of Department of 0.10 9.00 KF Health and Human Services; calendar reply date Jun-18-13 Index Pleadings 0.20 18.00 KF Jun-23-13 Strategy and status conference with Bruce 0.10 23.50 ARE Baron re Government Brief, Response and Discontinuance Jun-26-13 Review U.S. Supreme Court decision issued 2.00 550.00 BGB today for use in Reply Brief and other research for same and analysis of Governments Brief; begin draft of same Jun-27-13 Review of/draft e-mails re Third Circuit 0.50 150.00 LJC Orders Draft Reply Brief; prepare Oral Argument 2.00 550.00 BGB Form for Third Circuit for Louis Capozzi Jr. communicate with Court re Oral Argument date with copies to Louis Capozzi Jr. and Karen Fisher; communicate with Louis Capozzi Jr. re status of account Invoice #: 71952 Page 2 July 19, 2013 Jun-28-13 Draft Reply Brief for 3rd Circuit; research for 3.00 825.00 BGB same; communicate with Louis Capozzi Jr. and Karen Fisher re review of same and prepare for filing on 7/1/2013 Totals 8.00 $2,153.00 DISBURSEMENTS Disbursements Receipts Jun-30-13 Research 232.86 Investigation Expense 12.90 Totals $245.76 $0.00 Total Fees & Disbursements $2,398.76 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz# d866, P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko August 15, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 244-12 Inv #: 72513 RE: Litigation-Appeal of Medicare Preclusion to US District Court DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jul-01-13 Review of Reply Brief 0.80 240.00 LJC Communicate with Karen Fisher re preparation 0.60 165.00 BGB of Reply Brief for filing, with hard copy to Louis Capozzi Jr. for review; communicate with Louis Capozzi Jr. re 3rd Circuit Rules for Oral Argument; e-mail copy of Reply Brief to client Communicate with Bruce Baron and Louis 1.20 108.00 KF Capozzi Jr. regarding Acknowledgment and Designation of Arguing Counsel and Reply Brief, revise Reply Brief and draft transmittal letter to Court; file Reply Brief, correspond with Attorney Hymans inquiring DHHS' position on the submission of this matter on Briefs Jul-02-13 Review of/draft e-mails re Orders/Third 0.80 240.00 LJC Circuit issues Communicate with Louis Capozzi Jr. and 0.10 27.50 BGB Karen Fisher re filing Acknowledgment form with 3rd Circuit; review confirmation of same online Receipt and review of e-mail from Attorney 0.30 27.00 KF Hymans; communicate with Louis Capozzi Jr. and Bruce Baron regarding same; file Invoice #: 72513 Page 2 August 15, 2013 Acknowledgement and Designation of Arguing Counsel with Court Totals 3.80 $807.50 Total Fees & Disbursements $807.50 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capgz# d 866 PC Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko September 16, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 244-12 Inv #: 73048 RE: Litigation-Appeal of Medicare Preclusion to US District Court DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Aug-16-13 Communicate with Craig Adler re death of Dr. 0.10 27.50 BGB Salko; communicate with Louis Capozzi Jr. re need to obtain Estate authorization to continue matter Aug-20-13 Communicate with Louis Capozzi Jr. re need 0.60 165.00 BGB for possible continuance of oral argument; telephone call to Government Counsel re same and status of obtaining Estate authorization to continue case; communicate with Louis Capozzi Jr. and Craig Adler re follow up on same and to Karen Fisher re follow up on same Communicate with Louis Capozzi Jr. and 0.30 27.00 KF Bruce Baron regarding possible need of continuance and notification of DHHS counsel of Dr. Salko's death; draft correspondence to Gregory Hymans notifying him of status of third circuit court appeal; correspond with Attorney Hymans regarding status of litigation Aug-21-13 Draft letter to Mrs. Salko on need for Estate 0.50 137.50 BGB confirmation on whether to continue matter; communicate with Christina Mahady re current amount due on matter Review e-mail from Bruce Baron regarding 0.10 9.00 KF conversation with Attorney Hymans Invoice #: 73048 Page 2 September 16, 2013 Aug-23-13 Communicate with Louis Capozzi Jr. with 0.30 82.50 BGB draft letter to Mrs. Salko on whether to continue Appeal through Estate Aug-27-13 Communicate with Louis Capozzi Jr. re 0.10 27.50 BGB sending out letter to Mrs. Salko on whether Estate wants to proceed with matter; communicate with Karen Fisher re same Totals 2.00 $476.00 Total Fees & Disbursements $476.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz#Ad 866, PC Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN 4: 23-2911821 Donna Salko October 18, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 244-12 Inv #: 73570 RE: Litigation-Appeal of Medicare Preclusion to US District Court DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Sep-04-13 Communicate with OIG Counsel re 0.50 137.50 BGB continuance, with copies to Louis Capozzi Jr. and Karen Fisher; communicate with Louis Capozzi Jr. re follow up Sep-06-13 Communicate with Louis Capozzi Jr. re 1.00 275.00 BGB discontinuing appeal; communicate with OIG Counsel re same and form of discontinuation; draft same; communicate with Louis Capozzi Jr. and Karen Fisher re same; communicate with Mrs. Salko with copy of filed document File Joint Agreement to Dismiss Appeal filed 0.20 18.00 KF before the US Third Circuit Court of Appeals Sep-17-13 Receipt and review of correspondence from 0.10 9.00 KF Donna Salko Totals 1.80 $439.50 Total Fees & Disbursements $439.50 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: 717-233-4103 Donna Salko As at Jan 22, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 REMINDER NOTICE Bill Date Matter# Inv# Billed Int Due Paid Due Aging Jul-19-13 261-12 71898 1,203.30 75.36 0.00 1,278.66 > 120 days Aug-15-13 261-12 72514 110.00 5.42 0.00 115.42 > 120 days Sep-16-13 261-12 73049 715.00 23.98 0.00 738.98 > 120 days Oct-18-13 261-12 73571 216.00 3.83 0.00 219.83 <=120 days Nov-19-13 261-12 74127 137.50 0.27 0.00 137.77 <=90 days Dec-10-13 261-12 74616 620.50 0.00 0.00 620.50 <=60 days Jan-16-14 261-12 75113 1,515.26 0.00 0.00 1,515.26 <=30 days Totals $4,517.56 $108.86 $0.00 $4,626.42 Balance Due and Owing $4,626.42 Your account is past due. If you require copies of any of the invoices listed above,please call our Billing Department. Your prompt attention to these past-due invoices would be greatly appreciated. If payment has already been sent,please disregard this notice. EXHIBIT Capoz6 B d 866, PC Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko July 19, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File #: 261-12 Inv #: 71898 RE: Miscellaneous DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jun-I 1-13 E-mail RTKL request to Department of Public 0.30 82.50 BGB Welfare for copies of any Provider Agreement signed by Mrs. Salko Jun-18-13 Communicate with Louis Capozzi Jr. and 0.30 82.50 BGB Craig Adler re response to Creditor Claim by Genesis against Osprey Ridge Healthcare Center, Inc. Jun-21-13 Communicate with Craig Adler re response to 0.10 27.50 BGB Genesis Counsel on Judgment against NF Corp. Jun-24-13 Review Pre Hearing Order and time schedule 1.00 275.00 BGB in same; prepare Initial Disclosures letter to Department of Public Welfare Counsel per same, with copy to Mrs. Salko File Provider's Initial Disclosures 0.10 9.00 KF Jun-25-13 Draft Request for Production of Documents in 0.50 137.50 BGB No. 006-13-0010; communicate with Mrs. Salko re tax situation of Ron Halko and implications for lease of Mallard Jun-28-13 Draft letter to Department of Public Welfare 2.00 550.00 BGB Counsel of Settlement Proposal Response; communicate with Craig Adler re same; Invoice#: 71898 Page 2 July 19, 2013 communicate with Mrs. Salko, Louis Capozzi Jr. and Craig Adler re review of draft Totals 4.30 $1,164.00 DISBURSEMENTS Disbursements Receipts Jun-30-13 Research 39.30 Totals $39.30 $0.00 Total Fees & Disbursements $1,203.30 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz�i Adler, PC Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko August 15, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 261-12 Inv #: 72514 RE: Miscellaneous DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Jul-01-13 Revise and update response to Department of 0.30 82.50 BGB Public Welfare Counsel's Settlement proposal; office conference with Karen Fisher re faxing same to Department of Public Welfare Counsel Jul-02-13 Communicate with Mrs. Salko re current 0.10 27.50 BGB contact number and status Totals 0.40 $110.00 Total Fees & Disbursements $110.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capoz�iB dser PC Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko September 16, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 261-12 Inv #: 73049 RE: Miscellaneous DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Aug-05-13 Faxes to and from Department of Public 2.00 550.00 BGB Welfare Counsel on pending exclusion, termination and collection matter for Osprey Ridge; fax First Request for Production of Documents in same, with copies to clients Aug-13-13 Communicate with and voicemails from Mark 0.50 137.50 BGB Myers re changes to structure of sale of Mallard Meadows and Birch Hills; communicate with Craig Adler re same; office conference with Craig re follow up on same Aug-14-13 Office conference with Craig Adler re status of 0.10 27.50 BGB Purchase Agreement and need to keep operator of Mallard Meadows in deal the same Totals 2.60 $715.00 Total Fees & Disbursements $715.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capon# d 866 PC Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN #: 23-2911821 Donna Salko October 18, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 261-12 Inv #: 73571 RE: Miscellaneous DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Sep-09-13 Review of Department of Public Welfare 0.50 137.50 BGB responses to discovery in termination case before Bureau of Hearings and Appeals; review of Department of Public Welfare Request for Discovery in same; communicate with Karen Fisher to confirm that Department of Public Welfare did not file Initial Disclosures in case such that responses to its discovery is not required under Rules Sep-11-13 Communicate with Karen Fisher re receipt of 0.10 27.50 BGB Department of Public Welfare Disclosures and Discovery Responses Sep-18-13 Communicate with Donna Salko re 0.10 27.50 BGB Department of Public Welfare Discovery Requests Sep-27-13 Strategy and status conference with Bruce 0.10 23.50 ARE Baron re formal discovery issues and Settlement negotiations Totals 0.80 $216.00 Invoice#: 73571 Page 2 October 18, 2013 Total Fees & Disbursements $216.00 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capgz# d 866 , P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko November 19, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 261-12 Inv #: 74127 RE: Miscellaneous DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Oct-31-13 Communicate with Department of Public 0.50 137.50 BGB Welfare Counsel re status of Mallard Settlement; communicate with Mrs. Salko re same with copies to Louis Capozzi Jr. and Craig Adler and communicate with same about authority to continue representation re same; communicate with Louis Capozzi Jr. re representation issue Totals 0.50 $137.50 Total Fees & Disbursements $137.50 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capgz B d 866, PC Harrisburg, PA 17110 Ph:(717)233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko December 10, 2013 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 261-12 Inv #: 74616 RE: Miscellaneous DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Nov-25-13 Communicate with Bruce Baron rand Louis 0.30 70.50 ARE Capozzi Jr. re representation and Position Paper Communicate with Louis Capozzi Jr.,Andrew 2.00 550.00 BGB Eisemann and Craig Adler re status of BHA Appeal for Mrs. Salko and Osprey; status letter to Mrs. Salko re same re need for communication and action or firm must withdraw representation and with Substitution of Counsel form, with copies to same and to Karen Fisher Totals 2.30 $620.50 Total Fees & Disbursements $620.50 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Capgz# d 866 P.C. Harrisburg, PA 17110 Ph:(717) 233-4101 Fax:(717) 233-4103 EIN#: 23-2911821 Donna Salko January 16, 2014 Reflection Lifecare Group 37 Honesdale Road Carbondale, PA 18407-1431 File#: 261-12 Inv #: 75113 RE: Miscellaneous DATE DESCRIPTION HOURS AMOUNT TIMEKEEPER Dec-04-13 Communicate with Louis Capozzi Jr. and 0.60 165.00 BGB Craig Adler re e-mail from Mrs. Salko re status of matters; communicate with Mrs. Salko re same, with copy to Louis Capozzi Jr., Craig Adler,Andrew Eisemann and Karen Fisher; draft template for Position Paper; communicate with Mrs. Salko re status of Mallard license issues and time table for Osprey/Salko matter Dec-06-13 Communicate with Louis Capozzi Jr., Craig 0.10 27.50 BGB Adler,Andrew Eisemann and Christina Mahady re status of Fee Agreement for work on pending matters; office conference with Andrew Eisemann re work on same Dec-09-13 Draft Position Paper for Mrs. Salko's pending 4.00 1,100.00 BGB Bureau of Hearings and Appeals Appeal; communicate with Mrs. Salko re same; telephone call to Darius Salko re same; communicate with Craig Adler re exhibits for same; office conference with Karen Fisher re filing of same; communicate with Craig Adler, Louis Capozzi Jr.,Andrew Eisemann and Karen fisher re e-mail from Mrs. Salko re her filing separately with Bureau of Hearings and Appeals; communicate with Mrs. Salko re need for her to correct same; communicate with Tim Ziegler re analysis of exhibit for Invoice #: 75113 Page 2 January 16, 2014 Position Paper; communicate with Craig Adler and telephone call from Mrs. Salko on disposition of proceeds from sale of facility Prepare exhibits to be filed with Provider's 1.60 144.00 KF Position Paper; file and serve Position Paper Dec-12-13 File and serve Withdrawal of Appearance of 0.10 9.00 KF Counsel Totals 6.40 $1,445.50 DISBURSEMENTS Disbursements Receipts Dec-09-13 Courier Charge 15.00 Dec-12-13 Courier Charge 15.00 Dec-31-13 Research Charges 39.76 Totals $69.76 $0.00 Total Fees & Disbursements $1,515.26 Due Date: 30 Days From Date of Invoice. Any claims or disputes regarding this invoice or any items thereon must be submitted in writing within 15 days of receipt. Please put Invoice Number on your check, Thank You Louis J.Capozzi,Jr.,Esquire* - . P 1200 Camp Hill BypassDaniel K.Natirbof,Esquire C of ozzlA der,, ij�ef.& Camp Hill,PA 17011Donald R.Reave ,Esquire "l Craig I.Adler,Esquire** � ' SA, neys"c�t�cc Mailing Address:P.O.Box 5866 Andrew R.Eisemann.Esquire Harrisburg,PA 17110 Bruce G.Baron,Esquire Dawn L.Richards,Esquire q ww • Telephone: 717 233-4101 Matthew A.Thomsen,Esquire Facsimile:(717) 233-4103 Brandon S.Williams,Esquire www.capozziadler.com Marc A.Crum,Esquire Timothy Ziegler,Sr.Reimb.Analyst r Erin E.Motter,Jr.Reimb.Analyst ' w ? Mid-Penn Abstract Company Karen L.Fisher,Paralegal a Charter Settlement Company Keyoung J.Gill,Paralegal �� � Telephone:(717)234-3289 Gwenn M.Keene,Paralegal Facsimile:(717)234-1670 *(Licensed in PA,NJ and MD) January 30 2014 **(Licensed in PA and NJ) ' Donna M. Salko Reflection Lifecare Group, Inc. 37 Honesdale Road Carbondale, PA 18407 Re: Account with Capozzi&Associates,P.C. Amount Due: $18,871.27 Our Matter No.: 706-03 Dear Ms. Salko: As you are aware, our law firm represented Reflection Lifecare Group in various appeals before the Pennsylvania Department of Public Welfare for denials of MA Program Enrollment, an appeal in the U.S. District Court for federal health care program preclusion, and stock sale of your health care facilities. Please note that there is an outstanding balance due and owing in the amount of$18,871.27 for legal services rendered, and that you are responsible for the payment of the invoices. Enclosed please find a copy of the unpaid invoices regarding the above-referenced delinquent balance. Please make arrangements to pay the outstanding amount owed within 10 days from the date of this letter,to Capozzi Adler,P.C., P. O. Box 5866, Harrisburg,PA 17110. We expect that you will honor the terms of your Agreement with our law firm and remit payment. This action is being taken because, despite previous requests for payment, you have failed to remit payment for the legal services provided. I trust that you will give this Notice your immediate attention. Very truly yours, Marc . Crum /kJg Enclosure THIS LETTER AND ANY FUTURE LETTERS FROM OUR FIRM ARE AN ATTEMPT TO COLLECT A DEBT,AN INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. EXHIBIT Louis J. .Natir i,Jr.,Esquire* i] o�zi Adler P. C. Daniel K.Natirboff,Esquire 4n 1200 Camp Hill Bypass Donald R.Reave ,Esquire '3 r` � ' �� x Camp Hill,PA 17011 ** S� � �z(;. � : Craig I.Adler,Esquire 4�t�aVa -s.Plat llW Mailing Address:P.O.Box 5866 Andrew R.Eisemann,Esquir Harrisburg,PA 17110 Bruce G.Baron,Esquires Dawn L.Richards,Esquire Wk Matthew A.Thomsen,Esquire** ' � I Telephone:(717)233-4101 a p Facsimile:(717)233-4103 Brandon S.Williams,Esquire r www.canozziadler.com Marc A.Crum,Esquire q Timothy Ziegler,Sr.Reimb.Analyst Erin E.Molter,Jr.Reimb.Analyst Mid-Penn Abstract Company Karen L.Fisher,Paralegal ,AI IM Charter Settlement Company Keyoung J.Gill,Paralegal Telephone:Telephone:(717)234-3289 Facsimile: 717 234-1670 Gwenn M.Keene,Paralegal ( ) *(Licensed in PA,NJ and MD) March 26 2014 **(Licensed in PA and NJ) Donna M. Salko Reflection Lifecare Group, Inc. 301 Canaan Street Carbondale, PA 18407 Re: Account with Capozzi &Associates,P.C. Amount Due: $18,871.27 Our Matter No.: 145-14 Dear Ms. Salko: I am writing as a follow-up to my correspondence to you dated January 30, 2014, attempting to amicably settle this account. On February 11, 2014,you contacted me and advised that you would look into the outstanding account balances and get back in touch with me. To date, however, I have not received a response. Contact me within the next 10 days to discuss payment of the account balance under a payment arrangement. Otherwise,we will have no choice but to proceed with litigation. This serves as my final communication with you before we initiate civil litigation for the full amount owed,plus attorney fees and court costs. Very truly:. urs, Marc Crum �— /kj g THIS LETTER AND ANY FUTURE LETTERS FROM OUR FIRM ARE AN ATTEMPT TO COLLECT A DEBT,AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. • Louis J.Capozzi,Jr.,Esquire* dl • 1200 Camp Hill Bypass Daniel K.Natirboff,Esquire Camp Hill,PA 17011 Donald R.Reavey,Esquire tr Craig I.Adler,Esquire Mailing Address:P.O.Box 5866 Andrew R.Eisemann.Esquire tr' Harrisburg,PA 17110 Bruce G.Baron,Esquire '. Dawn L.Richards,Esquire Telephone:(717)233-4101 Matthew A.Thomsen,Esquire** Facsimile:(717)233-4103 Brandon S.Williams,Esquire q i vvww.gWozziadler.com Paul R.Van Fleet,Esquire „5 Marc A.Crum.Esquire `t Timothy Ziegler,Sr.Reimb.AnalystMid-Penn Abstract Company Erin E.Molter,Jr.Reimb.Analyst jCharter Settlement Company Karen L.Fisher,Paralegal Telephone:(717)234-3289 :t Keyoung J.Gill,Paralegal - •:... Facsimile:(717)234-1670 Gwenn M.Keene,Paralegal *(Licensed in PA,NJ and MD) i **(Licensed in PA and NJ) X "b* ter• April 8,2013 Director Bureau of Hearings and Appeals Department of Public Welfare rT' P.O. Box 2675 Harrisburg,PA 17105-2675 RE: REQUEST FOR HEARING AND DECLARATORY RELIEF&MEDIATION Osprey Ridge Healthcare Center, Inc. and Donna M. Salko v. Bureau of Program Integrity and Reliant Osprey Holdings, LLC Correspondence of March 11, 2013 concerning Payments of Rent and Scope of Prior Orders Concerning Indirect Participation Our Matter No. 537-12 Dear Director: Our Finn represents Osprey Ridge Healthcare Center, Inc. ("Osprey"), an enrolled owner of a nursing.facility provider that participated in the Pennsylvania Medical Assistance Program in all relevant periods through December 31,2012,as well as Donna M. Salko ("Mrs. Salko"), the owner of the corporation and of the real estate on which the nursing facility operated during such relevant prior periods and of the real estate on which the currently enrolled nursing facility provider, Reliant Osprey Holdings, LLC d/b/a Osprey Ridge Health and Rehabilitation Center("Reliant"), which operates at 45 North Scott Street, Carbondale, Pennsylvania 18407. The current address for Osprey and Mrs. Salko is in care of our Firm at P.O. Box 5866,Harrisburg,PA(Telephone: 717-233-4101). On behalf of our clients,we are filing this REQUEST FOR HEARING AND APPLICATION FOR DECLARATORY RELIEF pursuant to 55 Pa. Code §§ 41.31,41.42,with respect to correspondence and actions on March 11, 2013 involving the Bureau of Program Integrity (BPI), copies of which are attached hereto as Exhibit A. As of March 11,2013,BPI took the position that Reliant could not make payments of rent pursuant to its Lease with Mrs. Salko for the operation of the nursing facility while it was enrolled as a provider in the Pennsylvania Medical Assistance Program. Appellants previously agreed to the transfer of the license to operate the facility with Reliant under the terms of an Operational Transfer Agreement,which transfer became effective on January 1, 2013 after approval of the transfer of the license by the Pennsylv ja EXHIBIT L— Department of Health. Osprey and Mrs. Salko are aggrieved by these March 11,2013 actions by BPI because they currently interfere with Mrs. Salko's present rights to her property interests in the rent under the Lease and because they interfere with the conditions of transfer of the facility and its Medicaid Provider Agreement agreed to by Osprey, Mrs. Salko,and Reliant. Osprey is a provider enrolled in the Medical Assistance Program for periods through December 31, 2013 and restrictions imposed on March 11, 2013 by BPI on Reliant involve enrollment and payments under the Pennsylvania Medical Assistance Program. Therefore, Osprey,Mrs. Salko, Reliant, and BPI are proper parties to this matter since each of them has an interest in the resolution of this matter. We are requesting,pursuant to 55 Pa.Code&41.141,that BPI agree to submit this matter for voluntary mediation throuah the Governor's Office of General Counsel Mediation Program. BPI has not to date provided Osprey or Mrs. Salko with written notice of its"final" determination of the issues involved in this matter;however,BPI has instructed Reliant not to make payment of rent due under the Lease to Mrs. Salko; and,Reliant has not made such payments for January, February,and March 2013, in compliance with BPI's instructions. As a result of BPI interference and obstruction of Mrs. Salko's rights to payment of rent under the Lease, Mrs. Salko has been unable to make payments towards her financial obligations and is in danger of defaulting on those obligations and losing her interest in the Osprey real estate as well as her interest in other real estate. Mrs. Salko has no adequate remedy at law against BPI for any financial losses incurred while this dispute is resolved because of Sovereign Immunity. There is no dispute that Mrs. Salko's husband, Dr. Gregory J. Salko, is precluded from direct and indirect participation in the Pennsylvania Medical Assistance Program as of June 11, 2011,by Final Order of the Department. A copy of the Department's June 11, 2011 preclusion notice is attached as Exhibit B. There is no dispute that Reliant's rent payments are made to Mrs. Salko and not to Dr. Salko and that Reliant makes no payments directly to Dr. Salko. There is also no dispute that neither Mrs. Salko nor Osprey was a party.in the proceedings before the Department with respect to Dr. Salko's June 11,2011 preclusion notice. Under Pennsylvania Law,rents paid to a wife in her individual capacity, after surrender of her husband's interests, are not property of her husband. See: McLaughlin v. McLaugWin,410 Pa. 19 4, 187 A.2d 905, 907 (1963)(Recognizing wife's separate interest in stock after husband unconditionally released his interests in entireties property). Therefore, Mrs. Salko's receipt of rents in her individual and separate capacity does not constitute payments to Dr. Salko either directly or indirectly. DPW regulations define the"indirect payments"that are precluded from being made to an excluded provider at 55 Pa. Code § 1101.77(c)(2),as follows: (2) A provider whose enrollment in the program has been terminated may not, during the period of termination: (i) Own,render,order or arrange for a service for a recipient; (ii) Receive direct or indirect payments from the Department in the form of salary, equity, dividends, shared fees, contracts,kickbacks or rebates from or through a participating provider or related entity. 2 The Confidential Information at¶21 of DPW's Base Enrollment Application that DPW requires for the enrollment of providers in the Medical Assistance Program, with respect to actions that will preclude enrollment, does not ask whether the spouse of the applicant has any such precluding events. The Department cannot adopt,without new rulemaking, an interpretation of its regulations that is contrary to the express limitations in its current regulations or to the meaning of the term in related regulations and other existing interpretations. See: Hillcrest Home, Inc. v. DPW, 553 A.2d 1037(Pa. Cmwlth. 1989),appeal den. 563 A.2d 500(Pa. 1989);see also: Christopher v. SmithKline Beecham Corp.,_U.S._, 132 S.Ct. 2156, 2167-2168 (2012)(The Court need not defer to an agency's interpretation in circumstances that would seriously undermine the principle that agencies should provide regulated parties with fair warning of the conduct prohibited, including where the agency announces its interpretation for the first time in an enforcement proceeding and demands deference). In a different matter, as part of a February 22, 2013 settlement of a personal care home licensure matter at BHA Docket No. 034-07-0032,the Department agreed that the preclusion of Dr. Salko's receipt of any financial benefit directly or indirectly from the operation of a personal care home would not be construed to preclude: (a)any rents or other payments made to Mrs. Salko or to any legal entity of which she and not he is an owner,officer,director or shareholder; and, (b) indirect benefits resulting from Dr. Salko filing income tax returns using"married filing jointly" status with his wife, or from any shared living expenses, including vacation expenses. Pursuant to 42 CFR § 442.14(a),the Department was required to assign Osprey's Medicaid Provider Agreement to Reliant and the Department has done so,retroactive to January 1, 2013. During the Department's enrollment discussions with Reliant, however, BPI advised Reliant on March 11, 2013 that Reliant could not make payments of rent due under its Lease with Mrs. Salko because Mrs. Salko's husband was precluded from any direct or indirect participation in the Pennsylvania Medical Assistance Program. Mrs. Salko's husband, Dr. Salko,has not been an owner of Osprey since his exclusion from participation in federal healthcare programs on June 21, 2011 and is not an owner of the real estate subject to the Lease between Mrs. Salko and Reliant. Neither DPW nor the Federal Government has entered any Order precluding the direct or indirect participation of Osprey or Mrs. Salko. Mrs. Salko is not and never has been"a provider." The central issue in this matter is whether rent paid to Mrs. Salko by Reliant constitutes "indirect payments [to Dr. Salko] from the Department in the form of salary, equity, dividends, shared fees, contracts,kickbacks or rebates from or through a participating provider or related entity." Osprey and Mrs. Salko submit that it does not and that BPI's position is contrary to Mrs. Salko's separate rights of property in Pennsylvania, to the limitations of DPW's own regulations; and,to Federal Law,which expressly provides that the exclusion of Dr. Salko from participation in Federal healthcare programs does not automatically preclude either Mrs. Salko or entities she took over from Dr. Salko from.participation in Federal healthcare programs(42 CFR § 1001.1001, permitting but not requiring such additional exclusion as to entities only,not the spouse herself; 42 U.S.C. § 1320a-7(b)(8)(A)(iii)). 3 Reliant's payment of rent to Mrs. Salko has no relationship to the rate of payment DPW makes to Reliant, since DPW regulations require the capital component of the rate paid to Reliant after the change of ownership involved here to be the same as that paid prior to the change of ownership (55 Pa. Code § 1187.97(2)(i)). BPI's actions are implementing a new interpretation of DPW regulations without rulemaking to preclude Mrs. Salko's receipt of rent from Reliant pursuant to their Lease. BPI's actions are inconsistent with the limitations in the U.S. Constitution and the Pennsylvania Constitution relating to Due Process and Takings without Due Process(5t'Amendment of U.S. Constitution and Article I, § 10);and,related provisions of Pennsylvania Constitution in Declaration of Rights relating to rights to reputation,earning a living and as well as impairment of contracts in Pa. Constitution Article I, § 17);as well as in violation of Mrs. Salko's rights under the Administrative Agency Law, § 504; Lyness v. State Board of Medicine, 529 Pa. 535, 541-542, 605 A.2d 1204, 1207(1992) (Applying Declaration of Rights in Pennsylvania Constitution); Clark v. DPW,427 A.2d 712, 713 (Pa. Cmwlth. 198 1) ("Failure to provide adequate notice is a jurisdictional defect that invalidates administrative action until the defect is cured."); Hill v. Borough of Kutztown,455 F.3d 225, 236(3rd Cir. 2006) ("Stigma-plus test"for improper impact on reputation without Due Process). BPI's continuing violation of Appellants' Constitutional Rights constitutes irreparable harm per se. See: Elrod v. Burns,427 U.S. 347, 373 (1976) ("[tJhe loss of First Amendment freedoms, for even minimal periods of time,unquestionably constitutes irreparable harm."); Commonwealth v. TAP Pharmaceutical Products, Inc., 36 A.3d 1112, 1167-1169 (Pa. Cmwlth. 2011)(Continuing statutory violations constitute irreparable harm per se);Northern Pa. Legal Services, Inc. v. County of Lackawanna, 513 F.Supp. 678, 685 (M.D. Pa. 198 1) (citing Elrod v. Bumsl. It is always in the public interest to prevent an ongoing violation of a constitutional right. G&V Gannett Co., Inc. v. DePasquale,443 U.S. 368, 383 (1979),as cited in Buck v. Stankovic,485 F.Supp.2d 576, 586-597 (M.D. Pa. 2007). An action for declaratory and injunctive relief is proper where, as here, BPI is denying Appellants' constitutional rights under color of State Law. See: B.S. v. Somerset County, 704 F.3d 250 (3rd Cir. 2013). The relief that the Osprey and Mrs. Salko are seeking is a prompt declaratory determination that Reliant's payment of rent under the Lease between Reliant and Mrs. Salko is permitted by law and not precluded by the exclusion of Dr. Salko from participation in federal healthcare programs. Pursuant to 55 Pa. Code § 41.14,the Provider's verification in support of this Request for Hearing is hereby attached. 4 Respectfully submitted, Bruce G. Baron, Esquire Attorney I.D.No. 28090 Capozzi Adler,P.C. P.O. BOX 5866 Harrisburg, PA 17110 Telephone: 717-233-4101 [Attorney for Osprey and Mrs. Salko] Attachments. cc: Osprey Ridge Healthcare Center,Inc. Donna M. Salko Peter J. Garcia, Senior Counsel for DPWBPI Reliant Osprey Holdings, LLC in care of. Matthew C. Jones,Esq. 5 VERIFICATION I,Donna M. Salko,in my capacity as President.of Osprey Ridge Healthcare Center,Inc.,hereby state that I am authorized to make this verification on behalf of Osprey Ridge Healthcare Center, Inc.and on behalf of myself individually;and,that the facts set forth in the Request for Hearing filed in this matter are true and correct to the best of my knowledge,information,and belief,and that this verification is being made subject to 18 Pa.C.S. §4904,relating to unsworn falsification to authorities. Donna M.Salko DATE: 6 OSPREY MDGE HEALTHCARE & REHABILITAXION. CENT-ER m - 45 Notth Scott Street -Carbondale, ferns 18407T AMlLIr CARE. R L Phone; 570-282-1099 * Fax, 576-282-7415, Business Fax 57.0-212-531.10 6 Norse.s.-Fax: 570-282-311. November 12, 2012 Paniel1a W. Malley. Director Division of Program aild -P-rovider CornpliAnce Bureau Of Program Integrity: Department of Publk Welfare 'P.O. Box 2675 Harrisburg, PA. 17105-2675 BY U.S. MML& F.A-X TO; 717-772-4655 Re: RESPONSE TO NOTICE OF OCTOBER 12, 1012 OSPREY RIDGE HEALTH-CARE AND REHABILITATION CENTER — PROM Se#'0015'81978 Dear'Dfirecter.: This responds to your October 12, 2012 inquiry (copy attached as 0-1) requesting, (a.) writi,en documentation that Dr. Gregory J. --Salko, M.D. ('License. No. M.D0 I 3922E1 is.nolonger providing services either directly or indirectly to Medical Assistance recipients for/or through our nursing fa6lity; and, (b) detailed information regardingcurrent owriership and-control interests,*board menibership, managenlent, officers and/or principles of the nursing facility and the effective dates of any clianges, flieretc). Information ofntrol Issues As noted in your October 12, 2012 transmittal, Dr. Salk(j's exclusion was effective June 20, 2011. prior to which he had been an officerand owner of the nursing facility—As of June 17, 2011, Dr. Salko released all of his ownership interest in the nursing facility to his wrife,Donna .M.. Salko (the undersigned), and Donni! M. Salko bejcame the sole' Director of the Corporation. As of June .19 2011, Donna M. Satk.o became the sole Officeras well, which status continues to the date of this transmittal to you. We have attached copies ofthe following corporate documents relating to these cluing!es: EXHIBIT Pamela W. Mailey,Director Division of Program and Provider Compliance Bureau of Program Integrity Department of Public Welfare Re: RESPONSE TO NOTICE OF OCTOBER 12, 2012 OSPREY RIDGE HEALTHCARE AND REHABILITATION CENTER—PROMISe#001581978 Page Two November 12,2012 (a)Waiver of Notice of Meeting of Osprey Ridge Healthcare Center, Inc. dated June 17, 2011 as to Dr. Salko's release of his interests(0-2). (b)Minute of the Meeting of Shareholders of Osprey Ridge Healthcare Center,Inc.dated June 17, 2011 (0-3). (c)Shareholders Ratification of Decisions or Acts of Osprey Ridge Healthcare Center, Inc. dated June 17, 2011 (04). (d)Approval of Corporate Minutes of Osprey Ridge Healthcare Center, Inc. dated June 17,2011 (0-5). (e)Shareholder certificates showing reissuance of shares in Osprey Ridge Healthcare Center, Inc. in the name of Donna Salko only, as dated June 17, 2011, with a copy of the prior certificate in the joint names of Gregory and Donna Salko, as Tenants by the Entireties (0-6 AND O-7). (f) Waiver of Notice of Meeting of Osprey Ridge Healthcare Center, Inc. dated June 17, 2011 as to appointment of Directors(0-8). (g)Minutes of the Meeting of Shareholders of Osprey Ridge Healthcare Center, Inc. dated June 17, 2011 electing Donna Salko as the sole member of the Board of Directors and Chairman of the Board (0-9). (h)Shareholders Ratification of Decisions or Act of Osprey Ridge Healthcare Center, Inc. for June 17, 2011 as to election of Donna Salko (0-10). (i) Approval of Corporate Minutes of Osprey Ridge Healthcare Center, Inc. dated June 17, 2011 (0-11). (j) Waiver of Notice of Meeting of Osprey Ridge Healthcare Center,Inc. dated June 19, 2011 for the assignment of offices (0-12). (k)Minutes of Special Meeting of Directors of Osprey Ridge Healthcare Center, Inc. on June 19, 2011 to appoint Donna Salko as the President, Secretary, Treasurer, and Chief Operating Officer for the corporation (0-13). Pamela W. Malley, Director Division of Program and Provider Compliance Bureau of Program Integrity Department of Public Welfare Re: RESPONSE TO NOTICE OF OCTOBER 12, 2012 OSPREY RIDGE HEALTHCARE AND REHABILITATION CENTER— PROMISe# 001581978 Page Three November 12, 2012 (1) Approval of Corporate Minutes of Osprey Ridge Healthcare Center, Inc. dated June 19, 2011 relating to the meeting of that date(0-14). (m) Board of Directors Ratification of Decisions or Act of Osprey Ridge Healthcare Center, Inc. relating to the meeting of June 19, 2011 (0-15). In addition, as of June 17, 2011, the management company providing assistance at the facility, Reflection Lifecare Group, was owned entirely by Donna M. Salko. Note that Donald Yurkanin, the former Chief Operating Officer for Reflection Lifecare Group, is no longer employed by that company. The NHA is Teary Slachta. The real estate on which the facility operates is owned by Donna M. Salko. However,Osprey Ridge provided the Department with advance notice on August 31, 2012 of its intent to transfer ownership and control of the nursing facility to a new licensed operator. While this change of ownership was expected to be effective as of October 1,2012, it has been delayed; nevertheless, management responsibilities have been transferred to the projected owner's management company, Reliant Senior Care Management, LLC, effective November 1, 2012, and we expect that to be followed by a lease to the new licensee after approval of the change by the Department of Health. We provided notice of the change in management to the State Survey Agency pursuant to 42 CFR § 483.75(p). A copy of the current management contract is attached for your information and review (0-16). Pamela W. Mailey,Director Division of Program and Provider Compliance Bureau of Program Integrity Department of Public Welfare Re: RESPONSE TO NOTICE OF OCTOBER 12, 2012 OSPREY.RIDGE HEALTHCARE AND REHABILITATION CENTER—PROMISe # 001581978 Page Four November 12, 2012 Documentation of No Direct or Indirect Services for MA Residents Dr. Gregory J. Salko provides no services either directly or indirectly to Medical Assistance recipients for/or through our nursing facility. He is not the Medical Director of the facility or a member of any facility committee or work group. A list of current residents and their attending physicians is attached for your information and review (0-17). While your October 12, 2012 inquiry did not request documentation relating to the transition of Dr. Salko's patients after the effective date of his exclusion on June 20, 2012, we have been working with our corporate compliance counsel to review documentation relating to that transition period. Our review has disclosed that all of our residents who had previously chosen Dr. Salko as their attending physician were advised of the exclusion issue and selected other attending physicians on July 7, 2011 or July 8, 2011, as documented in the Nurses Notes and usually (but not in all cases) in a note in the Physician's Order. Copies of examples of such entries are attached for your information and review (0-18). Our compliance review also found that, on June 21, 2011 and July 4-5, 2011, three (3) residents (R.M., J.L., and C.S) were admitted to the facility who indicated that Dr. Salko was their attending physician, but that in each case they too were transitioned to other attending physicians by July 7-8, 2011 as documented in the clinical record. Our compliance review also found instances of orders by Dr. Salko relating to medications during the period from June 20, 2011 through the date on which the new attending physician was assigned (either July 7-8, 2011) and, in a few cases, after that date, but our review has not found services ordered since the end of July w Pamela W. Mailey, Director Division of Program and Provider Compliance Bureau of Program Integrity Department of Public Welfare Re: RESPONSE TO NOTICE OF OCTOBER 12, 2012 OSPREY RIDGE HEALTHCARE AND REHABILITATION CENTER—PROMISe# 001581978 Page Five November 12,2012 2011. The review therefore confirms that, during the period from June 20, 2011 until a resident agreed to the selection of a different attending physician on July 7 or July 8, 2011, residents in the facility who had previously selected Dr. Salko as their attending physician continued to be under his care and supervision. We are continuing to review the medication orders with our corporate compliance counsel and will be following up with the pharmacy contractor, Figliomeni Drug Store, to determine whether any of the orders were billed to any federal healthcare program and require adjustments as overpayments. We expect to complete that review before the end of this year; and, will report our findings and follow up to your Bureau. We are also working with our corporate compliance counsel to prepare a more formal disclosure concerning services provided by our facility while Dr. Salko was the attending physician from June 20, 2011 through the end date of his services and any related overpayment adjustments. Our compliance review does not include resident assigned to Dr. Salko who were discharged from the facility or died prior to June 20, 2011. Please let me know if there is any additional infonnation you require to resolve the Department's concerns about the nursing facility's compliance with the requirements of Dr. Salko's exclusion from federal healthcare programs. Very truly yours, Donna M. Salko, President Attachments (18). cc: Bruce G. Baron, Esq. SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson R_'{ _. < Sheriff � 1 sf� �" � s u'biotic) 4 T; Jody S Smith 244 JUL. 21 �. Chief Deputy Richard W Stewart CSRLANt/Solicitor - eiP NNS 1VUTYANIA Capozzi Adler, P.C. Case Number vs. Reflection Lifecare Group, Inc. (et al.) 2014-3746 SHERIFF'S RETURN OF SERVICE 06/25/2014 Sheriff Ronny R Anderson, being duly sworn according to law, states he made diligent search and inquiry for the within named Defendant to wit: Reflection Lifecare Group, Inc., but was unable to locate the Defendant in the Sheriffs bailiwick. The Sheriff therefore deputizes the Sheriff of Lackawanna, Pennsylvania to serve the within Complaint&Notice according to law. 06/25/2014 Sheriff Ronny R Anderson, being duly sworn according to law, states he made diligent search and inquiry for the within named Defendant to wit: Donna Salko, but was unable to locate the Defendant in the Sheriffs bailiwick. The Sheriff therefore deputizes the Sheriff of Lackawanna, Pennsylvania to serve the within Complaint& Notice according to law. 07/17/2014 The Sheriff of Lackawanna County, being duly sworn according to law, states he made diligent search and inquiry for the within named Defendant to wit: Donna Salko, but was unable to locate the Defendant in his bailiwick. The Lackawanna County Sheriff therefore returns the within requested Complaint& Notice as"Not Served"at 37 Honesdale Road, Carbondale, PA 18407. 07/17/2014 The Sheriff of Lackawanna County, being duly sworn according to law, states he made diligent search and inquiry for the within named Defendant to wit: Reflection Lifecare Group, Inc., but was unable to locate the Defendant in his bailiwick.The Lackawanna County Sheriff therefore returns the within requested Complaint&Notice as"Not Served"at 37 Honesdale Road, Carbondale, PA 18407. SHERIFF COST: $53.00 SO ANSWERS, July 17, 2014 RONNY R ANDERSON, SHERIFF SHERIFF' S RETURN - NOT SERVED CASE NO: 2014-00395 T COMMONWEALTH OF PENNSYLVANIA COUNTY OF Lackawanna County CPOZZI ADLER PC. VS SALKO DONNA ET AL K-9 DEPUTY DELUCCIE , Deputy Sheriff, who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named DEFENDANT , to wit: SALKO DONNA but was unable to locate Her in his bailiwick. He therefore returns the NOTICE AND COMPLAINT NOT SERVED , as to the within named DEFENDANT , SALKO DONNA 37 HONESDALE ROAD CARBONDALE, PA 18407-7000 NOT SERVED AS OF 07-09-2014 . VACANT HOME So answers : Mark P. McAndrew, Sheriff Sheriff ' s Costs : Docketing . 00 By: Service rno . 00 . . Affidavit ‘‘C . 00 K-9 DEPUTY DELUCCIE Surcharge D V\ . 00 Deputy Sh- 1 . 00 . 00 00/00/0000 Sworn and subscribed to before me this day of A.D. Notary SHERIFF' S RETURN - NOT SERVED CASE NO: 2014-00395 T COMMONWEALTH OF PENNSYLVANIA COUNTY OF Lackawanna County CPOZZI ADLER PC. VS SALKO DONNA ET AL K-9 DEPUTY DELUCCIE , Deputy Sheriff, who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named DEFENDANT , to wit: REFLECTION LIFECARE GROUP INC. but was unable to locate Her in his bailiwick. He therefore returns the NOTICE AND COMPLAINT NOT SERVED , as to the within named DEFENDANT , REFLECTION LIFECARE GROUP INC. 37 HONESDALE ROAD CARBONDALE, PA 18407 NOT SERVED AS OF 07-09-2014 . VACANT HOME So answers : Mark P. McAndrew, Sheriff Sheriff ' s Costs : Docketing . 00 By: Service . 00 11 .� Affidavit . 00 K-9 DEPUTY DELUCCI `_� Surcharge . 00 Deputy Sh— . 00 . 00 00/00/0000 Sworn and subscribed to before me this day of A.D. Notary CAPOZZI ADLER, P.C. f/k/a CAPOZZI & ASSOCIATES, P.C., A Pennsylvania Professional Corporation Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA v. : Docket No.: 2014-03746 REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP, and DONNA M. SALKO, Defendants TO THE PROTHONOTARY: Date: : Civil Action - Law PRAECIPE TO REINSTATE Pursuant to Pa. R.C.P. 401, please reinstate the above -captioned Complaint, attached. 067 CD -n CD C7/ Ma c . Crum, Esquire Att. ney I.D. No.: 91273 C pozzi Adler, P.C. .0. Box 5866 arrisburg, PA 17110 (717) 233-4101 CcS) 4II•n5 PQ ATN et d8d8a a* 3ogo'1� SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny RAnderson f IC{ Sheriff THE PROTHUN ..OTAfi r ZOiti AUG 19 AM D + 9 CUMBERLAND COUNTY PENNSYLVANIA Jody S Smith Chief Deputy Richard W Stewart Solicitor OFFICE of THE SHERIFF Capozzi Adler, P.C. vs. Reflection Lifecare Group, Inc. (et al.) Case Number 2014-3746 SHERIFF'S RETURN OF SERVICE 07/28/2014 Sheriff Ronny R Anderson, being duly sworn according to law, states he made diligent search and inquiry for the within named Defendant to wit: Reflection Lifecare Group, Inc., but was unable to locate the Defendant in the Sheriffs bailiwick. The Sheriff therefore deputizes the Sheriff of Lackawanna, Pennsylvania to serve the within Complaint & Notice according to law. 07/28/2014 Sheriff Ronny R Anderson, being duly sworn according to law, states he made diligent search and inquiry for the within named Defendant to wit: Donna Salko, but was unable to locate the Defendant in the Sheriffs bailiwick. The Sheriff therefore deputizes the Sheriff of Lackawanna, Pennsylvania to serve the within Complaint & Notice according to law. 08/07/2014 The requested Complaint & Notice returned by the Sheriff of Lackawanna County, the within named Defendant Donna Salko, not found. Mark P. McAndrew, Sheriff, Return of Service attached to and made part of the within record. 08/07/2014 The requested Complaint & Notice returned by the Sheriff of Lackawanna County, the within named Defendant Reflection Lifecare Group, Inc., not found. Mark P. McAndrew, Sheriff, Return of Service attached to and made part of the within record. SHERIFF COST: $53.00 SO ANSWERS, August 14, 2014 RONK R ANDERSON, SHERIFF (c} CountySute Sheriff, Te'eosoft, Inc. SHERIFF'S RETURN - NOT FOUND CASE NO: 2014-00458 T COMMONTWEALTH OF PENNSYLVANIA COUNTY OF Lackawanna County. CAPOZZI ADLER P.C. VS SALKO DONNA ET AL CPL.DOLPH DEININGER , Deputy Sheriff , who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named COMPLAINT to wit SALKO DONNA was unable to locate Her ,within the limits of Lackawanna County and the State of Pennsylvania nor to ascertain the DEFENDANT 's present whereabouts, and I do therefore return the within COMPLAINT 301 CANAAN ST. , NOT FOUND , as to the said CARBODNALE, PA NOT FOUND 8/7/14 VACANT DR'S OFFICE CLOSED Sheriff's Costs: Docketing .00 Service (U .00 Affidavit n�. �j .00 Surcharge I"t .00 .00 .00 Sworn and subscribed to before me this day of A.D. Notary So answers: Mark P. McAndrew, Sheriff ''ZaLvkboittA..." CPL.DOLPH DEININGER Deputy Sheriff 00/00/0000 SHERIFF'S RETURN - NOT FOUND CASE NO: 2014-00458 T COMMONTWEALTH OF PENNSYLVANIA COUNTY OF Lackawanna County• CAPOZZI ADLER P.C. VS SALKO DONNA ET AL CPL.DOLPH DEININGER , Deputy Sheriff , who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named COMPLAINT to wit REFLECTION LIFECARE GROUP INC was unable to locate Them ,within the limits of Lackawanna County and the State of Pennsylvania nor to ascertain the DEFENDANT 's present whereabouts, and I do therefore return the within COMPLAINT 301 CANAAN ST. , NOT FOUND , as to the said CARBONDALE, PA NOT FOUND 8/7/14 VACANT DR'S OFFICE CLOSED Sheriff's Costs: Docketing .00 Service .00 Affidavit .00 Surcharge .00 .00 .00 Sworn and subscribed to before me this day of A.D. Notary So answers: Mark P. McAndrew, Sheriff By CPL.DOLPH DEININGER Deputy Sheriff 00/00/0000 CAPOZZI ADLER, P.C. f/k/a CAPOZZI & ASSOCIATES, P.C., A Pennsylvania Professional Corporation Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA v. : Docket No.: 2014'. -03746 REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP, and DONNA M. SALKO, Defendants : Civil Action - Law WITHDRAWAL OF APPEARANCE ENTRY OF APPEARANCE TO THE CLERK OF SAID COURT: Kindly withdraw my appearance on behalf of Capozzi Adler, P.C. in the above -listed matter. Marc Crum, Esquire Atto ey I.D. No.: 91273 C ozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 (717) 233-4101 Kindly enter my appearance on behalf of Capozzi Adler, P.C. in the above -listed matter. �)F Dated: 2S/2-7 I `f Matthew A. homsen, Esquire Attorney I.D. No.: 307388 Capozzi Adler, P.C. P. O. Box 5866 Harrisburg, PA 17110 (717) 233-4101 Attorney for Plaintiff CAPOZZI ADLER, P.C. f/k/a CAPOZZI & ASSOCIATES, P.C., A Pennsylvania Professional Corporation Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA v. : Docket No.: 2014-03746 REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP, and DONNA M. SALKO, Defendants : Civil Action - Law ACCEPTANCE OF SERVICE PURSUANT TO RULE 402 I accept service of the civil Complaint in the above -referenced action on behalf of the above-named Defendants and certify that I am authorized to do so. Date: Al IL Jos- t, ' . r dies i, Esquire zewski Anderson Lalley & Tunis, PC oute 5 awley, PA 18428 pa11 R 25 ' rn rn. IN THE COURT OF COMMON PLEAS OF .j CUMBERLAND COUNTY, PENNSYLVANI p R kms; 9TH JUDICIAL DISTRICT CAPOZZI ADLER, PC f/k/a CAPOZZI & ASSOCIATES, PC A Pennsylvania Professional Corporation Plaintiff vs. No. 14 -3746 -Civil REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP and DONNA M. SALKO Defendants DEFENDANTS' ANSWER AND NEW MATTER AND NOW COMES, the Defendants, by and through their attorney, Joseph R. Rydzewski, Esquire, of Spa11, Rydzewski, Anderson, Lalley & Tunis, PC, and answers as follows: 1. Admitted, but formerly known as Capozzi and Associates, PC. 2. Admitted. 3. Denied as stated since Plaintiff only negotiated, contracted, and was hired by Dr. Greg Salko (hereafter "Doctor"), now deceased, on behalf of Defendant, Reflection Lifecare Group (hereafter "Reflection") as it's officer/representative and not by Donna Salko, (hereafter "Widow") as set forth in Exhibit B of the Complaint. 4. Admitted, and with its predecessor, Capozzi and Associates, are bound by the Pennsylvania Rules of Professional Conduct, then in force as promulgated by said Supreme Court. 5. Admitted as supplemented in response to Paragraph 3. 6. Admitted, but only to and for Reflection as set forth in New Matter. 7. Admitted. 1 8. Admitted, but no amendment or supplement took place to include or bind the Widow. 9. Admitted. 10. Admitted, but only until Plaintiff ceased services as set forth hereafter. 11. Admitted, but "you" only refers to Reflection. 12. Admitted, but "you" only refers to Reflection as does "parties". 13. Admitted, but that occurred because Plaintiff failed to follow the requirements of the Rules of Professional Conduct as set forth hereafter in New Matter. 14. Denied, only the Doctor, and not the Widow requested any services for Reflection, and further, said account invoices/ledgers are incorrect, invalid, or not as agreed as set forth hereafter in New matter. 15. Denied since said account invoices/ledgers are incorrect, invalid, or not as agreed, as set forth hereafter in New Matter. 16. Denied. Invoices were only provided to Reflections. 17. Denied. Invoices were only provided to Reflections. Further, said account invoices/ledgers are incorrect, invalid, or not as agreed, as set forth hereafter in. New Matter. 18. Denied. Invoices were only provided to Reflections. Further, said account invoices/ledgers are incorrect, invalid, or not as agreed, as set forth hereafter in New Matter. 19. Denied. Invoices were only provided to Reflections. Further, said account invoices/ledgers are incorrect, invalid, or not as agreed, as set forth hereafter in New Matter. 2 20. Denied. Invoices were only provided to Reflections. Further, said account invoices/ledgers are incorrect, invalid, or not as agreed, as set forth hereafter in New Matter. 21. Denied. Invoices were only provided to Reflections. Further, said account invoices/ledgers are incorrect, invalid, or not as agreed, as set forth hereafter in New Matter. 22. Denied. Invoices were only provided to Reflections. Further, said account invoices/ledgers are incorrect, invalid, or not as agreed, as set forth hereafter in New Matter. COUNT I 23. Defendants incorporate prior answers in response thereto as if more fully set forth at length. 24. Admitted, but only for what was validly owed as set forth hereafter in New Matter. 25. Admitted, but only for what was validly owed as set forth hereafter in New Matter. 26. Denied for reasons set forth in New Matter. 27. Denied for reasons set forth in New Matter. 28. Admitted, but certain work and/or employees were non -billable services. 29. Admitted. 30. Admitted. 31. Denied for reasons set forth in New Matter. 32. Admitted. 33. Denied that the amount claimed is in default as set forth in New Matter. WHEREFORE, Defendant, Reflection, demands Count I be dismissed. 3 COUNT II 34. Defendants incorporate prior answers in response thereto as if more fully set forth at length. 35. Admitted, but the necessary disclosures or waivers were not required as set forth hereafter in New Matter. 36. Admitted, but this does not make the Widow personally liable since she was only corporate owner. 37. Denied, since the action was only for Reflection and disclosures or waivers were not secured as set forth hereafter. 38. Denied as set forth above and hereafter in New Matter. 39. Admitted. 40. Denied. No implied contract can exist under the Rules of Professional Conduct or under the subject fee agreement as set forth herein. 41. Denied. No implied contract can exist under the Rules of Professional Conduct or under the subject fee agreement as set forth herein. WHEREFORE, Defendants request that Count II should be dismissed. COUNT III 42. Defendants incorporate prior answers in response thereto as if more fully set forth at length. 43. Denied. No services were agreed to be performed for a fee for the Widow, but only for Reflections. 44. Admitted, but that is not a fee agreement or agreement to represent the Widow for a fee individually, but rather, a verification as required under the Rules. 45. Admitted, but that is not a fee agreement or agreement to represent the Widow for a fee individually. 4 46. Admitted. 47. Admitted. 48. Denied. The services were as agreed for Reflection and for its corporate benefit. 49. Denied. No services were agreed to be performed for a fee for the Widow, but only for Reflections. 50. Admitted. 51. Admitted. WHEREFORE, Defendants request that Count III be dismissed. COUNT IV 52. Defendants incorporate prior answers in response thereto as if more fully set forth at length. 53. Admitted. 54. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 55. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 56. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 57. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 58. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 59. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 5 60. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 61. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 62. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 63. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 64. Denied as recognized by Plaintiffs' own filings and facts. If Plaintiff considered both the same, it violated the Rules of Professional Conduct as set forth hereafter. 65. Denied. Plaintiff was and is required to do its own investigation and determinations and cannot solely rely on any alleged representations of the widow. 66. Denied. No services were agreed to be performed for a fee for the widow, but only for Reflections. WHEREFORE, Defendants request that Count IV be dismissed. NEW MATTER 67. Plaintiff fails to set forth a cause of action under which relief can be granted including Counts II, III and IV. 68. Plaintiff's withdrew from representation of Defendants as set forth in Withdrawal attached as Exhibit A, and Defendants were then charged $1,515.26 for work continued to be done for the doctor after termination. 6 69. Defendant attempted sale of Mallard Meadow, Craig Adler (a partner) assured Widow orally that the bills to that end would be paid by the prospective buyer. Ron Halko was that prospective buyer. The Widow strongly resisted selling to Mr. Halko as he had multiple tax liens appearing in the newspaper (reaching over $100,000). Craig Adler once again, then advised the Widow that Ron Halko was "the only game in town" interested in buying and that the buyer would be paying the bill. Plaintiff thereafter invoiced $2,384.30 for same. 70. Defendant then was invoiced $3,919.78. for work done for Osprey Ridge AFTER the facility was sold. At the closing, Craig assured Defendant that "this closes out our work for Osprey". Meanwhile Plaintiff received around $70,000 for that sale at the closing. 71. Defendants were charged $476.00 for the Plaintiff's law firm to discuss sending an "Estate Authorization" after Plaintiff found out that the Doctor died. Defendant never received this, not personally or for the estate. 72. Defendants were charged $620 for them to withdraw representation in the DPW matters when services were cancelled. 73. This totals $8,978.84 in bills Defendants should never have had. 74. Further, in Whites Crossing, more than half of those charges stem from work they did for Amy Frick with only the deceased doctor's permission. She was a Physician Assistant who ran into some trouble with Medicare. Doctor arranged to have Capozzi to represent her in her appeals, and not for the Defendants. Whites Crossing was paying her bills until it ran out of money. 75. Defendant Widow protected, objected and denied personal liability as set forth in letter attached as Exhibit B. 7 76. Many of the charges were unreasonable, unnecessary or not as agreed, including for secretarial services; inter office conferences and administrative costs. 77. The suit is a violation of Rules of Professional Conductsince a written fee agreement, necessary, or arrangements that the Widow would be liable was not done as required. 78. The representation as billed for should have been limited to corporation/liability work only, and was in violation of Rules of Professional Conduct 1.2. 79. Plaintiff failed to disclose potential conflicts of interest with regard to the individual Defendant Widow as required by Rules of Professional Conduct 1.7, 1.8 or Rule 4.3(b) and (c). 80. The individual Defendant Widow cannot be liable since the individual Defendant Widow was acting only as an authorized constituent pursuant to Rule of Professional Conduct 1.13(a). 81. The Plaintiff failed to disclose and secure consent for alleged dual representation as required by Rule of Professional Conduct 1.13(c). 82. With regard to Count IV, said alleged conduct should not have included legal work performed for the same by Plaintiff as set forth in Rules of Professional Conduct 8.4(c) and 1.16(a). WHEREFORE, The Complaint should be dismissed. SPALL, RYDZEWSKI, ANDERSON, LALLEY & TUNIS, PC 4111. By: OSEPI Attorn: ID# R. RYf1ZEWSKI, for the Defendants 7652 3 Route 6 Hawley, PA 18428 (570) 226-6229 8 VERIFICATION I, DONNA SALKO, do hereby verify that the facts set forth in the foregoing ANSWERS TO COMPLAINT are true and correct to the best of my knowledge, infonnation and belief. I understand that any false statements herein are made subject to the penalties of 18 Pa.C.S.A. Section 4904, regarding unsworn falsifications to authorities. 424L1 Q&.Jk By: DONNA SALKO AT 8/19/2014 Grnail - FVV: Mallard Meal:tom 2013.09.05 CLIENT - DO NOT WORK THIS MATTER.pdf 333K • Lou Capozzi <LouC©capozziadler.corn> To: Bruce Baron <BruceB©capozziadlercorn> Cc: Donna Salko <gertie443@gmail.com>, Craig Adler <craiga©capozziadler.com> Donna: we cant perform any work on your behalf until payment is made on the overdue invoices. Thank you. Thu, Oct 31, 2013 at 3:51 PM Louis J. Capozzi, Esq. Capozzi Adler, P.C. 1200 Camp Hill Bypass Camp Hill, PA 17011 Mailing Address: P.O. Box 5866 Harrisburg, PA 17110 (717) 2334101 Fax (717) 233-4103 louc@capozziadler.com www.capozziadler.com [Quoted text hidden] <2013.09.05 I -f CLIENT- DO NOT WORK THIS MATTER.pdf> https://rnail.geogle.comtrnail/u/1/?ui=2&ik=b797fcc52c8Arieln=pt&search=inbox&th=1420ee14b868750d&sinil=1420eel4b868750d&sirn1=142101282283e240 4/4 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF PUBLIC WELFARE BUREAU OF HEARINGS AND APPEALS In the Appeal of: Osprey Ridge Healthcare & Rehabilitation Center and Donna M. Salko v. Bureau of Program Integrity BHA I.D. No. 6496 BHA Docket No. 006-13-0010 WITHDRAWAL OF APPEARANCE OF COUNSEL Please withdraw my appearance as attorney for Appellants in the above - captioned matter. Bruce G. Baron, Esquire Attorney I.D. No. 28090 CAPOZZI ADLER, P.C. P.O. Box 5866 Harrisburg, PA 17110 DATE: November 25, 2013 ENTRY OF APPEARANCE OF COUNSEL Please enter my appearance as attorney for Appellant in the above - captioned matter. Please send all further correspondence and notices with respect to this matter to the undersigned. DATE: September 15, 2012 Capozzi & Associates, P.C. Attorneys at Law 1200 Camp Hill Bypass Camp Hill, PA 17011 Dear Attorney Capozzi, Jr: I am in receipt of you letter dated 9/11/12. 1 fully understand it's contents, and to be sure, I realize that you and your firm represent one of the finest and most well connected law firms in the state. I need you to understand that I did not contract your serviCes. In fact, I was quite surprised by the letter sent to me at 301 Canaan Street. I do not intend to have two Personal Care Home Licenses in my name. I have no input in the running of these organizations and therefore am reticent to have the responsibilities, be they legal or financial, assigned to me. Shbuld1 have need of your services, I will contact you personally tothat end. Sincerely, Donna Salko CAPOZZI ADLER, P.C. f/k/a CAPOZZI & ASSOCIATES, P.C., A Pennsylvania Professional Corporation Plaintiff r� THE f';tO T HO ni4 F'QV R PM 12: 50 CUMBERLAND COUNTY PENNSYLVANIA : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA v. : Docket No.: 2014-03746 REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP, and DONNA M. SALKO, Defendants : Civil Action - Law PLAINTIFF'S RESPONSE TO NEW MATTER NOW COMES Plaintiff, Capozzi Adler, P.C., by its attorneys, and hereby answers Defendants' New Matter as follows: 67. Denied. Counts II, III, and IV each state valid bases for recovery from Defendants and aver sufficient facts to support those bases. 68. Denied. Exhibit A attached to Defendants' Answer and New Matter is an unsigned and unified draft withdrawal in the case before the Department of Public Welfare's Bureau of Hearings and Appeals (Osprey Ridge Healthcare & Rehabilitation Center and Donna M. Salko v. Bureau of Program Integrity; BHA Docket No. 006-13-0010) with a typed date of November 25, 2013. While Plaintiff did withdraw representation in that case as of December 12, 2013, all work billed to Defendants by Plaintiff in that matter (Capozzi Adler Internal Matter No. 537-12, pertaining to the sale of Osprey Ridge and surrounding litigation) were invoiced on or before October of 2013 (for work conducted in September of 2013 and earlier), as shown in Exhibit H attached to the Complaint. 69. Denied. Plaintiff invoiced defendants for a principal amount of $730.50 pertaining to the possible sale of Mallard Meadow (Matter No. 249-13) as shown in Exhibit F attached to the Complaint. Plaintiff also denies Defendants' averments with respect to statements made by Craig Adler as erroneous. 70. Admitted in part and denied in part. It is admitted that Plaintiff invoiced Defendants for a combined principal of $3,919.78 for the sale of Osprey Ridge and surrounding litigation (Matter No. 537-12) and for the FYE 6/30/2012 Case -Mix Rate Appeal (Matter No. 420- 12). It is denied that sale of the Osprey Ridge facility ended Defendants' requests for work by Plaintiff pertaining to that facility. Though the Osprey Ridge facility was sold effective January 1, 2013, work on litigation and administrative appeals pertaining to 2012 and earlier was still necessary to preserve Defendants' pecuniary interests. Plaintiff also denies Defendants' averments with respect to statements made by Craig Adler as erroneous. 71. Admitted in part and denied in part. It is admitted that Plaintiff invoiced Defendants for $476.00 in August of 2013. See Complaint at Exhibit I (Matter No. 244-12, Appeal of Medicare Preclusion to US District Court). It is denied that the purpose of this work was to provide Defendants with an "Estate Authorization." To the contrary, Plaintiff was seeking required authorization from the Estate of Dr. Gregory Salko to proceed with the Medicare Preclusion Appeal mentioned above upon Dr. Salko's death. Donna Salko, as 2 Dr. Salko's widow, declined to authorize the continuation of the aforementioned appeal on behalf of the Estate of Dr. Salko. 72. Denied. All invoiced charges are as stated in the Complaint and attached Exhibits. 73. Denied. All debts identified in the Complaint and attached Exhibits are validly owed by Defendants to Plaintiff. 74. Denied. The Fee Agreement pertaining to the Appeal of Denial of MA Program Enrollment for Amy M. Frick (Matter No. 262-12) was entered into between Plaintiff and Defendants. See Complaint at Exhibit B. 75. Exhibit B is a document that speaks for itself. As a result, no response is required. 76. Denied. All charges made by Plaintiff to Defendants are reasonable and in keeping with agreements made between Plaintiff and Defendants. 77. This paragraph is a conclusion of law to which no response is required. Insofar as a response is deemed necessary, this paragraph is denied. No Rule of Professional Conduct has been violated by Plaintiff. 78. This paragraph is a conclusion of law to which no response is required. Insofar as a response is deemed necessary, this paragraph is denied. No Rule of Professional Conduct has been violated by Plaintiff. 79. Denied. Plaintiff met all obligations required by the Rules of Professional Conduct. 80. This paragraph is a conclusion of law to which no response is required. Insofar as a response is deemed necessary, this paragraph is denied. Defendants are both appropriate parties in the above captioned action. 81. Denied. Plaintiff met all obligations required by the Rules of Professional Conduct. 3 82. This paragraph is a conclusion of law to which no response is required. Insofar as a response is deemed necessary, this paragraph is denied. No Rule of Professional Conduct has been violated by Plaintiff. Date: I /i Respectfully submitted, CAPOZZI ADLER, P.C. Matthew A. Thomsen, Esquire Attorney I.D. No.: 307388 P. O. Box 5866 Harrisburg, PA 17110 (717) 233-4101 Fax: (717) 233-4103 Attorneys for Plaintiff CAPOZZI ADLER, P.C. f/k/a CAPOZZI & ASSOCIATES, P.C., A Pennsylvania Professional Corporation Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA v. : Docket No.: 2014-03746 REFLECTION LIFECARE GROUP, INC. d/b/a REFLECTION LIFECARE GROUP, and DONNA M. SALKO, Defendants Civil Action - Law CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing document was served on the following by causing the same to be placed in the United States mail, first class, postage prepaid, addressed as follows: Joseph R. Rydzewskil, Esquire Spall, Rydzewski, Anderson, Lalley & Tunis, P.C. 2573 Route 6 Hawley, PA 18428 5 Matthew A. Thomsen, Esquire Attorney I.D. No.: 307388 CAPOZZI ADLER, P.C. P. 0. Box 5866 Harrisburg, PA 17110 (717) 233-4101 Attorney for Defendant