Aging agency cancels contract with adult group home - WNEM TV 5

Aging agency cancels contract with adult group home

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(Source: WNEM) (Source: WNEM)
BAY CITY, MI (WNEM) -

Several residents at a group home may have to leave and it is being blamed on an insurance issue.

The people living there and the owner of the facility want answers.

"I enjoy seeing them happy. They enjoy being here," said Cynthia Underwood, owner of St. Augustine's Adult Foster Care Home.

The residents are not related, but they call each other family. However, this weekend three of the six residents will have to move out.

"I told them it's not even about the money or the contract. I was willing to keep these clients," Underwood said.

She said earlier this month she received notice the Region VII Area Agency on Aging ended her contract, which means the home won't receive funds it needs to operate.

The director of the agency said it had to do with contract violations and insurance.

Underwood said she is working out the issues with the agency, but she doesn't want her clients to leave.

Margaret Winslow is one of the three residents set to leave. Underwood said it's because her appointed guardian chose to move her to a new home with a valid contract with the area agency on aging.

Winslow said she doesn't want to leave and her roommate doesn't want her to either.

"I cried when I found out she was going to be leaving. We watch TV together. We're one big family and I don't want to see any of us separated," Anita Zamora said.

Underwood said her contract ending has to do with a technicality and she is working to resolve it.

"They're just going to decline. This is all they know. It's awful," Underwood said.

The agency said they will assist the residents with moving if they choose to leave St. Augustine's. However, the agency is not forcing anyone to move out.

Bob Brown is the executive director of the agency.

"We've had violations to the contract since back in October," Brown said.

He said the first issue was lack of proper documentation.

"Some of them were the client logs and things like that. And I can't go into details because of the HIPPA laws," Brown said.

He said another issue was with workman's comp.

"It was the insurance policies, the workers' comp. That's what made me finally make a decision when my contract manager, who did her due diligence, brought that to my attention. That's a huge risk that we can't take," Brown said.

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