California Advocates for Nursing Home Reform v. Smith CA1/3

Background The complaint names as defendants Country Villa Service Corp. (CVSC), Country Villa East L.P., C.V. Westwood Single Purpose Entity, LLC, Steven Reissman, individually and as trustee of the Reissman Family Trust (collectively the Country Villa defendants), and Ron Chapman (director), in his capacity as the Director of the California Department of Public Health (the department).1 The complaint alleges that defendant CVSC “is a corporation engaged in the nursing home business as a so-called ‘management company.’ ” Country Villa East L.P. and C.V. Westwood Single Purpose Entity, LLC are licensed by the department to operate skilled nursing facilities in California. Steven Reissman and the Reissman Family Trust own and control the Country Villa defendants. According to the complaint, the Country Villa defendants executed a “management agreement” under which CVSC agreed to “assume operational control” of skilled nursing facilities operated by Country Villa East L.P. and C.V. Westwood Single Purpose Entity, LLC. This management agreement is allegedly representative of similar agreements CVSC entered into with more than 40 skilled nursing facilities in California. Each…