Tuesday, June 14, 2011
CANHR sues Sun Healthcare, settles out of court
CANHR, a nonprofit consumer advocacy organization filed a lawsuit charging Sun with unlawful business practices, unfair and fraudulent business practices, and false advertising (California Advocates for Nursing Home Reform v. Sun Healthcare Group Inc. 2003). The lawsuit alleged that Sunbridge facilities in California were more than 1 million hours on aggregate below the state's 3.2 nursing hprd direct care requirement, which resulted in a savings of more than $15 million by not meeting the staffing standard in 2000. The litigation was settled out of court in 2004 and the settlement results were not made public.