South Carolina              
Administrative Law Court
Edgar A. Brown building 1205 Pendleton St., Suite 224 Columbia, SC 29201 Voice: (803) 734-0550

SC Administrative Law Court Decisions

CAPTION:
Magnolia Manor-Inman vs. DHEC

AGENCY:
South Carolina Department of Health and Environmental Control

PARTIES:
Petitioner:
Magnolia Manor-Inman

Respondent:
South Carolina Department of Health and Environmental Control
 
DOCKET NUMBER:
04-ALC-07-0128-CC

APPEARANCES:
Dennis L. Gibbs, Director
DIVISION OF HEALTH LICENSING

Nancy S. Layman, Esquire
Attorney for Health Regulation
SOUTH CAROLINA DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL

David Reaves
Administrator, Magnolia Manor-Inman

M. Elizabeth Crum, Esquire
Attorney for Magnolia Manor - Inman
McNair Law Firm, P.A.
P.O. Box 11390
Columbia, South Carolina 29211
 

ORDERS:

CONSENT ORDER AND SETTLEMENT AGREEMENT

This final Consent Order and Settlement Agreement (“Agreement”) is entered into this ____ day of October, 2004, between the South Carolina Department of Health and Environmental Control and Magnolia Manor – Inman.

STIPULATION OF FACTS

1.Magnolia Manor – Inman (“Magnolia” or ”Facility”) is a 176-bed nursing home in Inman, South Carolina licensed to THI of South Carolina at Magnolia Manor – Inman, L.L.C. pursuant to S.C. Code Ann. Section 44-7-270 et seq. (2002).

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2. On December 10-11, 2003 a patient eloped from the Facility and subsequently died. A complaint was filed with the South Carolina Department of Health and Environmental Control (“Department” or “DHEC”) and a complaint investigation was conducted on December 16, 2003. As a result of this investigation, the Department cited violations of 24A S.C. Code Ann. Regs. 61-17 (Supp. 2003), Standards for Licensing Nursing Homes, and on March 8, 2004, DHEC imposed a monetary penalty of $8,100.00 on Magnolia. On April 5, 2004, Magnolia submitted a timely request for a contested case hearing pursuant to S.C. Code Ann. Section 44-7-320(B) (2002) and the Rules of Procedure for the Administrative Law Court.

3.The Department cited Magnolia with violations and repeat violations of the following regulations:

i)Licensee means the legal entity with whom rests the ultimate responsibility for maintaining approved Standards for the facility. (Reg. 61-17 § A(1)(l), Class III)

ii)Each facility shall appoint a full-time licensed administrator who has the necessary authority and responsibility for management of the facility. Any change in the position of administrator shall be reported immediately by the governing board or owner to the Department in writing. Such notification shall include, at a minimum, the name of the appointed individual, effective date of the appointment, and the number and expiration date of the current S.C. Nursing Home Administrator’s License or written verification of an emergency license. (Reg. 61-17 § B(3)(a)) (Class II)

iii)There shall be personnel adequate in number and skill in the facility at all times to provide appropriate care for the residents and to maintain supplementary services required by the facility. (Reg. 61-17 § E(1)) (Class III)

iv)When resident care needs or other pertinent factors require, modification of the minimum staffing standards may be required for specific facilities. (Reg. 61-17 § E(3)(d)) (Class II)

v)There must be a written order, to include length of time to be used, signed by the physician approving use of safety precautions either at the time they are applied to a resident or, in case of emergency, within 24 hours after they have been applied. Each procedure manual shall contain instructions on the specific precautions that may be used. (Reg. 61-17 § E(4)(c)) (Class II)

vi)Drugs shall be administered in accordance with orders of the attending physician, dentist or other person legally qualified to prescribe drugs or biologicals for human consumption. (Reg. 61-17 § F(7)(a)) (Class I)

vii)Date, time, dosage and method of administration of all medications and signature of nurse or qualified personnel administering. Complete record of all safety precautions including time, type, reason and authority for applying. Record of all pertinent factors pertaining to the resident’s condition. Date and time of all treatments and dressings. Incidents occurring while resident is in the facility, including adverse drug reactions and medication errors. Signature of personnel and date. (Reg. 61-17 § G(2)(d)) (Class I)

viii)An interdisciplinary care plan shall be formulated or adopted within 14 days of admission. Thereafter this plan shall be updated quarterly to reflect the comprehensive assessment of current problems and needs of each resident. (Reg. 61-17 § G(2)(f)) (Class II)

ix)An institutional structure, its component parts, facilities, and all equipment such as elevators, furnaces, call systems, sterilizers and emergency lights shall be kept in good repair and operating condition. (Reg. 61-17 § J(1)(a)) (Class II)

x) Every facility shall be planned, designed and equipped to provide and promote the health care, welfare, and safety of each resident. (Reg. 61-17 § Q(1)(a) (Class II)

xi)Life Safety Code (NFPA 101) (Reg. 61-17 § Q(2)(b)(6)) (Class II).

4. Class I violations are those which the Department determines present an imminent danger to facility residents or a substantial probability that the violation could result in death or serious harm. Class II violations are those which the Department determines have a direct or immediate relationship to the health, safety or security of facility residents and are not Class I violations. Class III violations are those which are not classified as serious in these regulations or those which are against the best practices as interpreted by the Department. 24A S.C. Code Ann. § 61-17 § A.(4)(a-c).

5.Prior to proceeding to a hearing on the merits of this case, the parties met on August 5, 2004 for the purpose of attempting to settle this matter. After additional negotiations, the parties were able to reach a settlement to resolve this action.

6.The Department affirms the violations it cited in its Report of Visit to Magnolia on January 22, 2004.

7.Magnolia does not admit and expressly denies that any of the cited violations affirmed by the Department in paragraph 6 hereof led to the death of the patient who eloped from the Facility on or about December 10-11, 2003.

8.With this Settlement Agreement, the Department and Magnolia wish to resolve this matter and to compromise and settle the disputes and allegations that have been pled or that could have been pled in the above-captioned case.

9.In view of the foregoing, the mutual promises and covenants set forth herein, and for such other good and valuable consideration as set forth herein, the receipt and sufficiency of which is hereby acknowledged, the Department and Magnolia agree as follows:

THEREFORE, IT IS AGREED

1.Magnolia has taken action to correct the cited violations and to ensure the facility is and continues to be in substantial compliance with the Standards for Licensing Nursing Homes.

2.Magnolia agrees to submit payment of the $8,100 monetary penalty to the Department within thirty (30) days of the execution of this Order. Payment is to be by check or money order payable to the S.C. Department of Health and Environmental Control and remitted to the following address:

Attention: Earl Bleakley

Division of Health Licensing

S.C. Department of Health and Environmental Control

2600 Bull Street

Columbia, S.C. 29201


3.With the execution of this Agreement, Magnolia hereby withdraws its request for a contested case hearing pending before the Administrative Law Court.

4.Magnolia acknowledges that S.C. Code Ann. Section 44-7-320 (D) (2002) provides that “[f]ailure to pay a penalty within thirty days is grounds for suspension, revocation, or denial of a renewal of a license. No license may be issued, reissued, or renewed until all penalties finally assessed against a person or facility has been paid.” Magnolia further agrees that the failure to pay the $8,100 settlement amount may also result in suspension, revocation, or denial of a license and that no license may be issued, reissued, or renewed until the settlement amount has been paid.

5.The Department in no way waives its authority to enforce, by penalty or otherwise, any and all statutory and regulatory requirements for the licensure Magnolia.

6.It is further agreed that, pursuant to S.C. Code Ann. Section 44-7-320 (2002), future violations or repeat violations of the regulations, or applicable licensing statutes, may result in the imposition of penalties or the revocation of the license to operate Magnolia, and that Mr. David Reaves, Magnolia’s administrator, has been informed of this.

7.This Consent Order and Settlement Agreement governs only Magnolia’s liability to the Department for civil sanctions arising from the matters set forth herein and constitutes the entire agreement between the Department and Magnolia with respect to the resolution and settlement of the matters set forth herein. The parties are not relying upon any representations, promises, understandings or agreements except as expressly set forth within this Order.

8.The undersigned individuals signing this Agreement on behalf of the parties represent and warrant that they are duly authorized to execute this Agreement and lawfully bind their principals.

9.In the event of the invalidity of any term or provision of this Agreement, all terms and provisions shall be considered severable and the balance of this Agreement shall remain in effect.


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