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Department of
SOCIAL SERVICES

Community Care Licensing


FACILITY EVALUATION REPORT

Facility Number: 300600816
Report Date: 11/28/2022
Date Signed: 07/11/2023 08:17:17 AM


Document Has Been Signed on 07/11/2023 08:17 AM - It Cannot Be Edited

STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

FACILITY EVALUATION REPORT		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 770 THE CITY DR., SUITE 7100
ORANGE, CA 92868



FACILITY NAME:ROWNTREE GARDENSFACILITY NUMBER:
300600816
ADMINISTRATOR:CLAUDIA LUSCA-BORCSAFACILITY TYPE:
741
ADDRESS:12151 DALE STREETTELEPHONE:
(714) 530-9100
CITY:STANTONSTATE: CAZIP CODE:
90680
CAPACITY:280CENSUS: 178DATE:
11/28/2022
TYPE OF VISIT:OfficeANNOUNCEDTIME BEGAN:
11:00 AM
MET WITH:Randy Brown TIME COMPLETED:
11:45 AM
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At this office meeting present were: Jerome Haley, Licensing Program Analyst, Marina Stanic, Regional Manager, Icela Estrada, Program Administrator, Paramjit Judge, General Auditor III, Acting Assistant Program Administrator, Allison Nakatomi, CCCB Manager, Katie Anderson, Assistant Branch Chief, Jorge Mojica, General Auditor III, Jacqueline Juarez, Audit Manager, Randy Brown, Chief Executive Officer, Michael Beeman, Chief Financial Officer, Anna Hablitzel, Board Member, Stan Leach, Board Member, Jim Stearman, Attorney, and Pamela Kaufmann, Attorney.

The purpose of this meeting was to elaborate on the plans that were discussed at the last meeting held November 14, 2022.



The following topics were discussed:

· Rescheduling the meeting to a later date
· Rowntree Gardens Financial Plan and Viability of their program
· Federal Grant Money
· Entrance Fees and SNF Profitability
· Accuracy of the 2nd monitoring report (Dated 11/10/22)
· Selection of a Management Company with decision making authority and Consultant

Mr. Randy Brown asked the meeting to be rescheduled due to the financial plan that was intended to be submitted relied on entrance fees. Mr. Brown stated the accusation to rescind the rights of Rowntree Gardens (Rowntree) to engage in continuing care contracts was received the weekend before the meeting and a notice of defense is being filed. It was decided that the meeting would be rescheduled for December 12, 2022 to give Rowntree an opportunity to come up with a financial plan that addresses the financial concerns of the Department.

Continued on LIC809 C
SUPERVISOR'S NAME: Luz AdamsTELEPHONE: (714) 222-3821
LICENSING EVALUATOR NAME: Jerome HaleyTELEPHONE: 714-703-2840
LICENSING EVALUATOR SIGNATURE:
DATE: 12/12/2022
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:
DATE: 12/12/2022
This report must be available at Child Care and Group Home facilities for public review for 3 years.

LIC809 (FAS) - (06/04)
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STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

FACILITY EVALUATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 770 THE CITY DR., SUITE 7100
ORANGE, CA 92868
FACILITY NAME: ROWNTREE GARDENS
FACILITY NUMBER: 300600816
VISIT DATE: 11/28/2022
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Assistant Branch Chief Katie Anderson spoke about the financial situation of Rowntree and the viability of their program. Mr. Brown stated that Rowntree’s design was never intended to only be an RCFE and their business model includes entrance fees to finance other portions of their operating expenses. Ms. Anderson brought up the issue that Rowntree was having financial issues before the entrance fees were restricted. Department has been working with the Licensee on plans which they provided; however, Rowntree has not shown sustainable breakeven operations.

Mr. Brown explained they tried to address its declining financial position in 2018 and 2019 with the change of its brand name, aligning operating expenses, and marketing; however, due to COVID-19, it was difficult to predict future operations for the last two to three years. Now with normalization, the future is more predictable and the Licensee will put together a plan after consultation with their team and other industry experts.

There was further discussion regarding the reasoning why it could benefit the organization to hire a management company with the authority to make changes and how it could cause more financial obligations to the organization.

The Actuarial Study from FY2020, especially the list of 12 bullets will be discussed at the next meeting.

The next Office Meeting will be held December 12, 2022, at 11:00 AM.



An exit interview was conducted, and a copy of this report was provided to the Licensee on December 12, 2022 via email for input, and an email read receipt confirms receipt of the report.
SUPERVISOR'S NAME: Luz AdamsTELEPHONE: (714) 222-3821
LICENSING EVALUATOR NAME: Jerome HaleyTELEPHONE: 714-703-2840
LICENSING EVALUATOR SIGNATURE:

DATE: 12/12/2022
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 12/12/2022
LIC809 (FAS) - (06/04)
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