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Nursing Home Agrees To Refunds

December 9, 2004
When residents of a West Virginia nursing home paid for their care in advance, the company stipulated that, should they die before their contract expired, their relatives would receive a refund. But the nursing home's parent company apparently reneged on the deal.

West Virginia Attorney General Darrell McGraw says his office has reached a settlement with Regency Park, a Maryland corporation headquartered in Annapolis, Maryland, to provide the agreed-to refunds. To date, 11 families have complained to the attorney general's office and have received refunds totaling $16,317.35.

Regency Park had represented to its residents that they had a day-to-day contract and promised to refund residents' families if a resident died prior to the time period for which they had paid in advance. The Executive Director of Regency Park even sent refund invoices to the owners of the company in Maryland listing the amounts the relatives were owed. Despite consumers' numerous requests for the promised refunds, Regency Park failed to honor the consumers' requests.

The settlement also includes a provision that requires Regency Park to provide a refund to all other consumers who file a meritorious complaint with the attorney general's office by January 21, 2005.

The Consumer Protection Division began investigating Regency Park when it received several complaints from consumers regarding the refusal to pay refunds. A lawsuit was filed in the Circuit Court of Cabell County this past September.

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