LAWRENCE COUNTY Fosnaught calls for action against official, two nursing home buyers

One commissioner wants to wait for completion of a consultant's report.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- One Lawrence County commissioner is calling for the firing of the county nursing home's financial officer and pursuit of criminal charges against two men who tried to buy the home.
Commissioner Ed Fosnaught sent a letter to fellow commissioners calling for the action, contending that the financial officer held checks that should have been turned over to the county treasurer. Specifically, Fosnaught writes that a check dated Feb. 26, 2003, was not turned over to the county treasurer until May 7, 2003.
At that same time, Fosnaught continues, an account in the name of Sylvan Heights Realty Partners, a group trying to buy the county home, was opened and more than a half-million dollars of county money was deposited in it.
George Howley, one of the Sylvan Heights partners, has said the sales agreement with the county gave the group the authority to move the money into a private account.
Fosnaught also asked in his memo that the county solicitor look into filing criminal charges against anyone involved in moving the cash.
He said he is basing his opinion on a preliminary report ZA Consulting of Harrisburg gave commissioners last week. The company is auditing the nursing home books and looking at the home's operations when Americare, a nursing home management company owned by one of the potential buyers, John Hadgkiss, was in charge.
Commissioner Roger DeCarbo said he believes commissioners should wait until ZA completes its investigation before proceeding with terminating anyone or pursuing criminal charges.
ZA's final report is expected to be complete next week.
DeCarbo noted that the Pennsylvania Attorney General's office has been investigating the matter.
"Action at this time would be premature," he said.
Commissioner Brian Burick said he would not comment on Fosnaught's requests because they are matters of litigation and personnel. He believes Fosnaught is using the matter as an election issue.
Fosnaught and Burick are both seeking re-election.
"I have minutes from meetings where Mr. Fosnaught said personnel matters should not be made public," Burick said. "I believe he is just sending those letters to make himself look good prior to an election and not in the best interest of Hill View Manor and the county."
Commissioners have been at odds over the nursing home since the sale failed a few months ago.
The sale was stopped after county Controller Mary Ann Reiter questioned the whereabouts of money from a private pay patient account.
More than $570,000 of county money was found in a bank account opened in Sylvan's name.
Findings
ZA Consulting's preliminary report found several other problems including:
UThe buyers did not have the authority to deposit county money into a private bank account.
UPatient costs increased by $43 per day under the management of Americare, a company owned by one of the potential buyers, as the patient population went down.
UAn increased number of supplies were purchased while Americare was in charge. Costs went up for groceries, dietary supplies, medical supplies and other things.
Fosnaught noted in his memo that when money was being put into Sylvan's account, the county home needed money to be transferred from the county's contingency fund to Hill View's account because there wasn't enough money to cover payroll.
cioffi@vindy.com