Quick Take:
Despite a history of violations, American House, a personal care home in Lebanon, will stay open during the appeal process following the revocation of its operating license by the Pennsylvania Department of Human Services.
After issuing an Aug. 2 letter revoking the operating license of downtown Lebanon personal care home American House, the Pennsylvania Department of Human Services is allowing the facility with a history of violations and provisional licenses to remain open pending the resolution of an appeal filed by the owner.
Read More: American House Personal Care home has license revoked; residents’ fate uncertain
On Friday, Aug. 9, DHS spokesman Brandon Cwalina confirmed that an appeal had been filed by American House and that the department would allow the facility to remain open and provide care for residents until the appeal process is concluded, which could take months.
The appeal process allows for an initial hearing before a DHS administrative hearing officer, which has yet to be scheduled. If either party is unhappy with the result, it can appeal further through several stages of administrative and judicial reviews.
American House – home to over 50 residents, many with special needs – has a years-long history of inspection violations relating to staffing, medication, medical, and fire safety issues, resulting in three successive “provisional licenses.”
DHS officials allow American House to operate while revocation appeal is pending
The Aug. 2 letter sent to American House by DHS deputy secretary Juliet Marsala said that, as “a result of … licensing inspections on December 19, 2023, February 27, 2024 and May 14-15, 2024 … the violations specified on the enclosed Licensing Inspection Summaries (LIS) were found. As a result of violations with 55 Pa. Code Ch. 2600 (relating to Personal Care Homes), the Department hereby REVOKES your license to operate the above facility.”
Marsala’s letter specified that revocation “is based on the violations attached to this notice and your failure to comply with the Department‘s regulations, gross incompetence, negligence and failure to submit an acceptable plan to correct noncompliance items….”
Marsala went on to say “if you disagree with the decision to REVOKE your license, you have the right to appeal through hearing before the Bureau of Hearings and Appeals. … If you decide to appeal, a written request for an appeal must be received within 10 days of the date of this letter.”
Cwalina briefly contested that the Aug. 2 letter was actually a “notice of non-renewal,” not a notice of immediate revocation, even though the term “non-renewal” does not appear. However, Cwalina later dropped this point and referred to the action as a license revocation.
The license revocation would have become irreversible 11 days from the date of the letter if no appeal to the department’s Bureau of Hearings and Appeals was filed. However, since American House filed an appeal, the timeline for further action by DHS remains unclear.
Since American House has filed an appeal of the department’s license revocation, it will remain open, serving residents, with the approval of DHS.
No schedule for the appeal process was available as of publication time, and it could be months before the bureau decides the appeal, with further appeals, including to the courts, possibly to follow.
If the appeal is denied, DHS said it would work with the facility to ensure safe relocation of residents while also honoring their choice about where they wish to be relocated.
American House owner explains his position and plans going forward
A LebTown reporter sat down with American House owner Luis Hernandez at the facility on Friday, Aug. 9. He was accompanied by the facility’s new administrator, Deion Adams, who had been on the job about two weeks, following the resignation of the previous administrator.
While the interview was in progress, a representative of Lebanon County’s Mental Health/Intellectual Disabilities/Early Intervention department was on the premises, interviewing residents.
Hernandez said the violations found in May 2024 that prompted DHS to initiate revocation proceedings had already been corrected.
The May 14-15 inspection at American House found 10 violations centering on staffing issues, fire and evacuation procedures, and medication storage and records. None of the violations appear to have involved imminent threats to residents’ health and safety.
“As you see in the [May 14 and 15 inspection] report, all the violations found are administrative, not resident issues,” Hernandez said. “All of those 10 topics have already gotten done,” he added. “We’ve notified the state. That means they will come and look again at those 10 items to make sure that we are complying.”
Hernandez conceded, however, that he isn’t present at American House on a daily basis.
“I’m the owner, but I’m not always here,” he said. “I rely on my administrator.”
Hernandez said Adams is American House’s fourth administrator in the roughly three years he’s owned the facility.
Hernandez said he is also a pastor at a Lebanon church and owner of WiCare Home Care Agency. WiCare is also headquartered in Lebanon, but Hernandez said it has no connection to American House, operating as a completely independent business.
In September 2021, LebTown profiled Hernandez as pastor of Living Christian Church, which had purchased the former Pushnik’s Diner property on Cumberland Street. Living Christian Church received its tax-exempt status from the Internal Revenue Service in June 2021 and, as a recognized church, is not required to file annual information returns (Form 990) with the tax authority.
Read More: Through Living Christian Church, former Pushnik’s Diner has a new calling
WiCare has itself recently run afoul of regulatory authorities. The U.S. Department of Labor has sued WiCare and Hernandez, alleging that they failed to pay in-home caregivers overtime and minimum wages, as required by federal law.
On July 31, U.S. District Court Judge Yvette Kane agreed with the DOL, ruling against WiCare and Hernandez by entering a summary judgement, without trial. They have the right to appeal within 30 days.
Hernandez declined to comment on the WiCare lawsuit, which appears to have no relation to American House.
Hernandez said that he would eventually like to sell the personal care home, and that he had listed the business for sale with a Harrisburg broker, but has taken it off the market until the current licensing issues are resolved.
“We are going to sell the business,” he said. “Our lawyers are working on that process. We’ve had people interested.”
“Plan A is to keep American House open and licensed, Plan B is to sell,” he explained. But, “eventually Plan B is going to happen.”
Hernandez concluded the interview by reiterating that the history of violations at American House concerned administrative matters, not resident safety issues, and that residents have never been placed in imminent danger of physical harm.
“All of this situation is on the administrative side, not the people side.”
Read More: DHS inspection reports of American House
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