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CA health care provider fights back against CDSS license revocation

We noted in our immediately preceding blog post the vast sweep of regulatory powers wielded by the California Department of Social Services. As we stressed in our February 26 entry, the CDSS “is not to be trifled with.”

We also noted in that post, though, that the CDSS’s broad reach is far from limitless. A company targeted for some alleged wrongdoing should never just passively acquiesce to punitive treatment sought to be doled out by the agency.

One Simi Valley care provider facing CDSS blowback has taken an aggressive fight-back approach to the department’s formal move to strip it of its professional license. SAILS Malton — which runs many facilities across California that cater to individuals with developmental issues — responded to the agency’s move by quickly filing a notice of defense. That action results in the matter now proceeding to a formal hearing before the state’s Office of Administration.

The agency’s revocation move was reportedly precipitated by an incident last year occurring at one of SAILS’ homes. A young man wandered off the premises and was killed on a nearby freeway. CDSS officials state that regulators additionally took a number of other things into consideration relevant to the company’s “overall performance.”

California law mandates that SAILS’ hearing request must be honored within 90 days of its submission date. It is important to note that materially adverse actions imperiling the company’s existence or livelihood cannot be taken by regulators while the hearing remains open. As a recent media account of the case notes, SAILS “may remain in operation while the matter is resolved.”

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