06:23 PM EDT on Monday, July 3, 2006

By SAMIRA JAFARI / Associated Press Writer

Although Kentucky’s largest center for mentally retarded adults has been hit with nearly 20 citations over patient neglect and abuse, state officials have extended a contract with the center’s private health care provider.

The Cabinet for Health and Family Services said Monday it extended the company’s management contract, which would have expired June 30, for another four months at a cost of $8.8 million.

The extension gives Liberty until October to bring the facility in south-central Kentucky under compliance with state and federal regulations, said Mark Birdwhistell, secretary of Health and Family Services.

If the company fails, “we have no obligation to move forward with Liberty,” Birdwhistell said in an interview.

The Pennsylvania-based company was signed on last November in the wake of a series of problems at the Somerset facility, including the deaths of two residents and numerous citations.

The long-standing issues prompted the Department of Justice to investigate Oakwood and the federal Centers for Medicare and Medicaid Services to cut funding to the facility. The money was reinstated as Health and Family Services pursued its appeal.

Liberty CEO Rick Robinson said in a statement that the contract extension “will allow Liberty and the Oakwood administration the time to fully focus on the safety of residents and the crucial work remaining to be done at Oakwood.”

Gayle Rees, head of a group representing parents with children at Oakwood, agreed, saying, “Giving Liberty additional time to make the needed improvements is the best course available to the Cabinet to provide safe conditions for the residents.”

But Sen. Ernesto Scorsone, D-Lexington, who questioned some parts of the Liberty’s initial contract, said Liberty has done little to improve Oakwood and that it’s contract should not have been extended.

“They haven’t been able to deliver on the safety issue,” said Scorsone, a member of the Government Contract Review Committee.  “How many months do we give this outfit before we say they’re not working?”

Since January 2005, the Communities at Oakwood has received 19 citations by the state inspector general for serious violations that threatened the health or safety of residents and 15 employees have been arrested for allegation of abuse and neglect. Eight of the employees were arrested in June.

The most recent citation was issued Sunday, citing Oakwood for failure to supervise a blind patient with a history of self injury and seizures. Staff members found a deep laceration in the back of the resident’s head after a group picnic trip on April 24.

According to the citation, caretakers failed to keep supervision over the resident within the required “arm’s reach.”

About half of the violations have occurred under the watch of Liberty HealthCare Corp.

Since Liberty took over management, Oakwood has received 13 citations for major health and safety violations, which are called Type A citations. However, some of the citations were for incidents that occurred prior to November.

Birdwhistell said the recent problems are hurting Oakwood’s chances at compliance, but he added that he’s hopeful that Liberty can step up to its responsibilities. He said to change management at Oakwood now would have jeopardized any ongoing progress there.

Liberty’s main contribution so far has been beefing up the direct care staff by more than 260 employees, alleviating the problem of major staffing shortages and mandatory overtime.

The state’s contract with Liberty includes a provision that fines the company $10,000 per Type A citation.

Liberty employees fill the top 20 positions at Oakwood, including chief executive officer, director of quality improvement, director of nursing and director of therapists.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)

APTV-07-03-06 1746EDT