Tuesday, January 13, 2004

By Gary Rotstein, Pittsburgh Post-Gazette

A federal bankruptcy judge yesterday approved a Jan. 23 sheriff's sale of the Ronald Reagan Atrium I Nursing and Rehabilitation Center.

The Alzheimer's Disease Alliance of Western Pennsylvania had hoped to avoid the forced sale of the long-term care center its owns in Robinson by filing for bankruptcy Dec. 18. Normally, a bankrupt debtor has a chance to reorganize its business and avoid a sheriff's sale resulting from mortgage foreclosure.

Judge Bernard Markovitz agreed with the alliance's bank, however, that the nonprofit organization has no chance to raise $10 million to pay off its debts, now that Atrium is empty of residents and its officials are barred from operating the nursing home/personal care home because of legal problems. He said Ameriserv Financial Bank of Johnstown may proceed with the sheriff's sale next week in hopes of finding a new buyer and recovering its investment.

"I don't know what more can be done in Bankruptcy Court. ... Probably, the facility's lost at this point," said Lawrence Bolla, an attorney from Erie representing the alliance and its president, Martha F. Bell.

Bell, 57, of West Mifflin, who was responsible for developing Atrium and running it since its 1995 opening, has been charged with involuntary manslaughter and other offenses for the death of 88-year-old Alzheimer's patient Mabel Taylor in October 2001. A preliminary hearing on criminal charges against her, the home's director of nursing and the alliance is to resume next Tuesday.

Atrium encountered numerous financial and regulatory problems in recent years, and its occupancy continued dropping last year as doubts arose about its future.

Dan Birsic, a lawyer representing the bank, said the property attracted interest from numerous long-term care operators before it was emptied. He was uncertain whether any would bid on Jan. 23, or if they would be discouraged from doing so now that the facility has no operating licenses, no patients or staff and no agreement that the Department of Public Welfare will provide Medicaid payments for nursing home patients.

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