Common use of Improper Transfers Clause in Contracts

Improper Transfers. During the Relevant Period, Elant engaged in a practice of moving long-term residents with Medicaid coverage to Brandywine from other Elant Homes ("transferring facilities"); Brandywine had more difficulty filling its beds while the transferring facilities were more successful in attracting residents for whom reimbursement would be higher than for the transferred residents; the purpose of the transfers orchestrated by Elant was financial - to enhance revenues at the transferring facilities by filling the openings left by the transferred residents with new, higher reimbursement resident admissions, and to enhance revenues at Brandywine by increasing its census; in March 2009, Elant senior managers used resident transfers to create the impression that Brandywine's census had improved in order to mislead and deter Elant's Board of Directors from selling Brandywine; Elant's transfers of residents for these reasons was improper and violated 10 NYCRR § 415.3(h); Elant failed to fully inform residents as to the transfers, which were stressful, by not disclosing the true purpose behind the moves, in violation of 10 NYCRR § 415.3(h)(l)(i), 18 NYCRR § 515.2(b)(l)(c) and§ 518.l(c); Elant staff members involved knew that the transfers were improper and did not complete required documentation showing the reasons for the transfers, in violation of 10 NYCRR § 415.3(h)(l)(ii).