~puc's Number `conservation' Hindered By Deregulation, Fcc And Old Rules

Anna Sokash Of Main Street, Swoyersville,

By JENNIFER LEARN-ANDES jandes@leader.net
 Wednesday, January 03, 2001 &nbsp;&nbsp;&nbsp;&nbsp;Page: 1A 





Luzerne County officials hope at least one good thing will result from a
budget shortfall and subsequent 17.15-mill tax increase: sympathy from the
federal government that could result in a smaller settlement for problems at
Valley Crest Nursing Home. &nbsp;&nbsp;&nbsp; 
 The U.S. Department of Justice is calculating the county's bill for
possible Medicare overbilling and other problems at the county-owned facility. &nbsp;&nbsp;&nbsp; Legal bills from Stevens &amp; Lee, the law firm hired by the county, show the
county's ``financial position'' was raised in settlement discussions on July
28, a few days after minority Commissioner Stephen A. Urban discovered and
disclosed the county's $8 to $16 million budget shortfall. &nbsp;&nbsp;&nbsp; 
 When questioned on Tuesday, Stevens &amp; Lee lawyer Harriet Franklin confirmed
she is using the county's money woes to try to convince the federal government
to lower the county's liability. &nbsp;&nbsp;&nbsp; 
 Franklin said it's not unusual to cite financial distress in settlement
negotiations, especially between government entities when tax dollars are at
stake. Numerous government agencies have pleaded poverty and won reductions in
penalties, she said. &nbsp;&nbsp;&nbsp; 
 Franklin, the attorney leading the inquiry, said she has drafted a ``form
of a settlement agreement'' and presented an offer to the federal government,
but she refused to offer any figures. &nbsp;&nbsp;&nbsp; 
 County officials, she said, have not seen the draft settlement agreement.
That's not unusual because the county hired - and trusts - her firm to
negotiate the best settlement possible, Franklin said. &nbsp;&nbsp;&nbsp; 
 Franklin said the decision is with the federal government. Federal
officials were waiting to respond to the settlement offer until county
commissioners approved a final 2001 budget Dec. 28, she said. &nbsp;&nbsp;&nbsp; 
 Urban voted against the 2001 budget, saying the 17.15-mill tax increase was
unnecessary because there are dozens of available cuts and revenue sources. &nbsp;&nbsp;&nbsp; 
 Board of Commissioners Chairman Tom Makowski could not be reached for
comment Tuesday. &nbsp;&nbsp;&nbsp; 
 A July 7, 1999, U.S. Department of Justice letter said the county could be
forced to pay back millions in overpayments and penalties. Federal
investigators have refused to comment on the status of their inquiry since
then. &nbsp;&nbsp;&nbsp; 
 Majority commissioners have placed the expected bill between $2 to $3
million. &nbsp;&nbsp;&nbsp; 
 Majority commissioners set aside $2 million in the 2001 budget as a Valley
Crest contingency fund. &nbsp;&nbsp;&nbsp; 
 That money can be used on anything at Valley Crest, including repaying the
federal government. It is not clear what the county will do if the federal
government's bill exceeds $2 million, although Makowski has said he would try
to work out a suitable payment agreement if the money is not available. &nbsp;&nbsp;&nbsp; 
 The budget contains $3.25 million in another contingency fund to cover
unanticipated expenses. &nbsp;&nbsp;&nbsp; 
 The county has paid Stevens &amp; Lee $333,000 so far to reorganize the nursing
home and negotiate a settlement, according to bills recorded in the
controllers' office. &nbsp;&nbsp;&nbsp; 
 Much of the firm's work in recent months has focused on implementing a
compliance program that Franklin said will show the federal government that
the county is serious about correcting deficiencies at the facility. &nbsp;&nbsp;&nbsp; 
 With the most recent bill, dated Nov. 3, covering work done in August,
there are more bills in the pipeline. Commissioners hired Stevens &amp; Lee in the
summer of 1999. &nbsp;&nbsp;&nbsp; 
 ``We're doing what we know needs to happen,'' Franklin said. &nbsp;&nbsp;&nbsp; 
 Representatives of at least four county taxpayer groups continue to
pressure county officials to sell the facility, saying it is a cash drain with
little hope of thriving under government ownership. &nbsp;&nbsp;&nbsp; 
 Jennifer Learn-Andes, a Times Leader staff writer, can be reached at
831-7333. &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp;

County Seeks Mercy In Valley Crest Fines 
Local Officials Hope The County's Budget Shortfall Will Cause Feds To Assess A
Smaller Fee Concerning Nursing Home Problems.

County Seeks Mercy In Valley Crest Fines Local Officials Hope The County's Budget Shortfall Will Cause Feds To Assess A Smaller Fee Concerning Nursing Home Problems.