Judge Rules Continued Service for Patients of Memphis, Tenn., Health Care Firm

By Daniel Connolly, The Commercial Appeal, Memphis, Tenn.

Feb. 13–A federal judge in Nashville has issued a ruling favorable to patients of Memphis-based home health care firm Senior Services, but the litigation over TennCare benefits for the low-income elderly and disabled clients continues.

A recent order by U.S. Dist. Judge William J. Haynes, Jr. prevents the state from cutting off services to the 500 patients involved and says the state must restore any benefits that it has discontinued.

Haynes had already placed a temporary stay in effect. He also certified the case as a class-action suit and denied TennCare’s motion to dismiss it.

Don Donati, an attorney for the patients, said he wants to ensure that patients receive necessary medical care as Tennessee transfers them from one state program to another.

“So we’re real happy with the judge’s order,” he said.

In a statement, TennCare spokeswoman Marilyn Wilson said the transition of the patients into a different state program would give them access to more services than they have now and that TennCare hopes it happens soon. She said the transition would put patient safety first.

“TennCare is hopeful that the court will approve the transition soon,” she said.

Senior Services is not directly involved in the lawsuit, but president Deborah H. Cotney said that she is pleased the court is addressing the needs of patients and their families.

“We do not know what the judge’s decision will mean for our program, but we hope that patients will continue to be able to receive their care from us if they so choose,” she said.

Memphis-based Senior Services offers a range of services to elderly and disabled people, including a TennCare-backed program for people who would otherwise go to nursing homes.

The firm’s case managers work with outside companies and arrange for patients to receive services such as meals and home health aides.

But Senior Services also offers some of the services itself. The federal government has ruled that the firm has an incentive to steer contracts to itself, meaning the patients would not have a free choice of provider.

TennCare, the state administrator of the federal Medicaid program for the poor and disabled, initially fought the federal government’s ruling but went on to adopt it last year and is now defending it in court.

Under pressure from the federal government and TennCare to choose between offering direct services or case management services, Senior Services said last year that it would choose case management services and lay off 140 workers in its direct services divisions.

The low-income patients were to receive care through another state program.

But a group of patients sued in October, and the transition to the other program is on hold until the court works out methods to transfer the patients’ care from one state program to another.

The next hearing is scheduled for Feb. 20, Donati said.

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