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Hearts & Hands Improves, Resolves Litigation

On April 14, District Attorney Jeffrey S. Rosell announced that his office, with the California Attorney General’s Division of Medicare Fraud and Elder Abuse, has resolved ongoing litigation with Santa Cruz Skilled Nursing Center, Inc., doing business as Hearts & Hands Post Acute Care & Rehab Center at 2990 Soquel Ave., Santa Cruz, with a stipulated judgment.

The action alleged the company violated laws that protect patients’ safety when they were discharged from a facility, they failed to provide adequate staffing and had an inordinate amount of emergency calls to the facility.

In April 2020, the Santa Cruz County Superior Court entered a preliminary injunction and appointed a monitor to report on compliance with the terms of the injunction. During the case, the compliance by the company dramatically improved, including full compliance with discharge planning and notice, reduction in emergency services calls by 90% and improvement in patient care, according to the District Attorney’s Office.


Although the facility’s management litigated at first, they changed course and worked cooperatively over the last three years to dramatically improve the facility and its operations, which was always the goal of the joint prosecution, according to Rosell. Initially the judgment imposed a $250,000 penalty for violations; however, all but $50,000 has been stayed in recognition of the facility’s cooperation.

The monitoring and injunction will continue for two more years to ensure ongoing compliance.

“Public safety is always the number one goal of the Santa Cruz County District Attorney’s Office,” said Rosell. “It’s gratifying to see our joint prosecution efforts reap positive change and benefits for our dependents and seniors, among the most vulnerable members of our community.”

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