STATE OF CONNECTICUT DEPARTMENT OF SOCIAL SERVICES 25 SIGOURNEY STREET * HARTFORD, CONNECTICUT 06106-5033 August 18, 2010 Beth Goldstein, Administrator Jewish Home for the Aged, Inc. 169 Davenport Avenue ‘New Haven, CT 06519 Provider #: 000000323 Dear Ms. Goldstein: ‘As you know, Medicaid advances to your facility totaling $1,518,000 remain outstanding at this time. On July’13, 2010, in anticipation of a September 2010 sale of Jewish Home for the Aged to JOPAL New Haven, LLC (“JOPAL”), the department indicated that recoveries would start in September 2010 in the amount of $500,000.00 with the balance recouped over eleven months between October 2010 and August 2011 at $92,545.45 per month, JOPAL is no longer pursuing facility purchase and yesterday you indicated to Gary M. Richter, Director of CON and Rate Setting, that there was a strong likeliliood that a sale agreement with an individual from Chicago, Illinois would be entered into by your facility by early next week. We are willing to temporarily delay the scheduled September 2010 start of Medicaid advance recovery given active sale efforts; however, Jewish Home for the Aged, Inc., must agree through execution of this letter that: © Upon execution of a purchase and sale agreement for Jewish Home for the Aged, Inc., DSS will be notified verbally and in writing. * Jewish Home for the Aged, Inc. acknowledges that if a sale agreement is not executed by August 31, 2010 that there will not be a delay in the recovery schedule and the department may petition the Superior Court for the appointment of a receiver. You acknowledge that any interruption in the scheduled payroll cycles for employces or any increase in outstanding amounts due to employee fringe benefit accounts may result in immediate Medicaid advance recovery actions and/or department petition the Superior Court for the appointment of a receiver. * Jewish Home for the Aged, Inc. hereby represents and agrees that DSS may rely on such representation that Jewish Home for the Aged, Inc, including any affiliated entities, are not preparing for a bankruptcy filing and there are no current or anticipated foreclosure actions on the facility. ‘An Equal Opportunity / Affirmative Action Employer Printed on Recycled or Recovered PaperMs, Goldstein August 18, 2010 Page 2 of 2 * Inthe event a bankruptey filing is prepared at a time when any Medicaid advance amounts are outstanding, you will notify the department thirty business days prior to filing with the court and agree to cooperate with the department and the Office of the Attomey General in assuring that department's ability to recover advances and other amounts due to the department will not be stayed or otherwise restricted by any bankruptcy filing. You further agree that in the event of a bankruptcy filing, you shall take all steps necessary so that any stay entered (including the automatic stay) that would preclude recoveries by DSS shall be lifted by agreement of the parties and upon approval of the Court. ‘* Jewish Home for the Aged, Inc., consents to the appointment of a receiver to operate the facility in accordance Section 192-542 of the Connecticut General Statutes (CGS) in accord with any petition filed within the next 180 days by DSS and/or the Department of Public Health (DPH), with the Superior Court and waives its right to service of the notice of the application and order of appointment and waive its right to a hearing as set forth in Section 19a-542(c) CGS. An authorized representative of the Jewish Home for the Aged, Inc. shall execute a Stipulation reflecting such consent upon request of DSS. * You acknowledge and agree that in the event any scheduled recovery cannot be made due to inadequate Medicaid claims, the department may, at its discretion, continue recoveries in subsequent months in order to recover the balance of the Medicaid advance payments and that the department reserves its right to recover the full amount due at any time. Please indicate your understanding and agreement with the terms set forth in this letter by signing and returning the signed original to Gary M. Richter, Director, CON and Rate Setting, DSS. Sing Michael P. Starkowski Commissioner Beth Goldstein, Administrator Jewish Home for the Aged, Inc. ce: Henry Salton, Assistant Attorney General Gary Richter, Director, CON and Rate Setting Lee Voghel, Director, Financial Management & Analysis