The Connecticut Attorney General issued the following news release:
Attorney General Richard Blumenthal today announced that the bankruptcy court has approved an agreement to appoint a chief restructuring officer (CRO) entrusted with full authority over patient care and financial functions at Haven Eldercare, LLC and all of its nursing homes.
The appointment will effectively displace CEO Raymond Termini's control, requiring the new officer's approval for all company decisions concerning finances and patient care.
'This major positive step establishes an independent authority with complete power over finances and patient care - safeguarding health and safety, as well as financial integrity,' Blumenthal said.
Under today's agreement, in the event that a dispute arises between the debtor and the CRO with respect to the CRO's powers or decisions, the company or CRO may present the dispute to the court for resolution.
The court is expected to name the CRO by the end of the week, Blumenthal said.
'Patient protection is the paramount goal in today's agreement - a significant step, which the governor supports,' Blumenthal said. 'This agreement transfers control from present management to an independent officer, acting solely to ensure financial stability and proper patient care.
'This agreement accomplishes all the major goals of our trustee motion, while preserving the option to seek a trustee quickly if necessary. I acted in consultation with the Governor, who expressed her concern for patient health and safety and continued monitoring and scrutiny by DSS and DPH. I assured her that investigations and possible action concerning lawbreaking could and would proceed to hold accountable anyone who may have misused funds.'
