H.O.P.E., Inc. v. Eden Mgmt. LLC

• Decision Date: 03 September 2015
• Docket Number: Case No. 13–cv–7391
• Citation: 128 F.Supp.3d 1066
• Parties: H.O.P.E., Inc., d/b/a/ Hope Fair Housing Center, an Illinois Not-for-Profit Corporation; Kimberly O'Connor; and Tammy Mormino; Plaintiffs, v. Eden Management LLC d/b/a Eden Supportive Living ; 311 Lincolnway Properties LLC d/b/a/ Eden Fox Valley; 222 State Street Properties LLC, d/b/a/ Eden Champaign LLC; Michael Hamblet Jr.; Maria Drosos; Carleen Curalli; Kimberly Cross; Governor Patrick Quinn, in his official capacity; Julie Hamos, in her official capacity as Director of the Illinois Department of Healthcare and Family Services; Theresa Eagelson Wyatt, in her official capacity as Acting Medicaid Director for DHFS; Kelly Cunningham, in her official capacity as Chief of DHFS Bureau of Long Term Care; John K. Holton, in his official capacity as Director of the Illinois Department of Aging ; and Michelle R.B. Saddler, in her official capacity as the Secretary of the Illinois Department of Human Services, Defendants.
• Court: U.S. District Court — Northern District of Illinois

128 F.Supp.3d 1066

H.O.P.E., Inc., d/b/a/ Hope Fair Housing Center, an Illinois Not-for-Profit Corporation; Kimberly O'Connor; and Tammy Mormino; Plaintiffs,

v.Eden Management LLC d/b/a Eden Supportive Living ; 311 Lincolnway Properties LLC d/b/a/ Eden Fox Valley; 222 State Street Properties LLC, d/b/a/ Eden Champaign LLC; Michael Hamblet Jr.; Maria Drosos; Carleen Curalli; Kimberly Cross; Governor Patrick Quinn, in his official capacity; Julie Hamos, in her official capacity as Director of the Illinois Department of Healthcare and Family Services; Theresa Eagelson Wyatt, in her official capacity as Acting Medicaid Director for DHFS; Kelly Cunningham, in her official capacity as Chief of DHFS Bureau of Long Term Care; John K. Holton, in his official capacity as Director of the Illinois Department of Aging ; and Michelle R.B. Saddler, in her official capacity as the Secretary of the Illinois Department of Human Services, Defendants.

Case No. 13–cv–7391

United States District Court, N.D. Illinois, Eastern Division.

Signed September 3, 2015

Jennifer K. Soule, James Brady Griffin, Justin A. Haber, Kelly K. Lambert, Soule, Bradtke & Lambert, Elmhurst, IL, Susan Ann Silverstein, AARP Foundation Litigation, Washington, DC, for Plaintiffs.

Jason T. Lundy, Polsinelli Shughari PC, Matthew Joseph Murer, Dmitry Shifrin, Mark Thomas Deming, Polsinelli PC, John E. Huston, Karen Elaine Konieczny, Illinois Attorney General's Office, Sunil Shashikant Bhave, Illinois Attorney General, Chicago, IL, Thomas A. Ioppolo, Chicago, IL, for Defendants.

MEMORANDUM OPINION AND ORDER

JOAN B. GOTTSCHALL, United States District Judge

Plaintiffs, Kimberly O'Connor and Tammy Mormino, are Medicaid recipients who believe they are eligible for the Illinois Medicaid Waiver Supportive Living Program on the basis of their physical disabilities. These two plaintiffs (the "Individual Plaintiffs"), on behalf of themselves and a class, along with H.O.P.E., Inc. ("HOPE"), a private, nonprofit corporation, bring this suit against, inter alia , several current and former employees of the State of Illinois (collectively, "State Defendants").¹ Plaintiffs allege that the State Defendants have unlawfully excluded individuals with mental disabilities from participating in the Supportive Living Program in violation of the Fair Housing Act ("FHA"), 42 U.S.C. § 3601 et seq., the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 12101 et seq., and the Rehabilitation Act, 42 U.S.C. § 794.

Now before the court are the State Defendants' motions to dismiss. For the reasons set forth herein, the motions are granted, and Plaintiffs' claims against the State Defendants (Counts IV, V, and VI) are dismissed.

I. BACKGROUND

A. The Supportive Living Program

Medicaid, enacted in 1965 as an amendment to the Social Security Act of 1935, is a joint federal-state program that provides medical assistance to low income individuals.² See 42 U.S.C. § 1396 et seq. Although the federal government does not require states to participate in the Medicaid program, once they do, they "must comply with federal statutes and regulations." Bertrand v. Maram, No. 05–cv–0544, 2006 WL 2735494, at *1–2 (N.D.Ill. Sept. 25, 2006) (citing 42 U.S.C. § 1396a(a)(10) ), aff'd sub nom.Bertrand ex rel. Bertrand v. Maram, 495 F.3d 452 (7th Cir.2007) ; see, e.g., 42 C.F.R. § 440.210, 440.220 (listing mandatory services a participating state must provide to the "categorically needy" and "medically needy").

In this case, the State Defendants' provision of mandatory services is not at issue. Rather, the Amended Complaint centers on a voluntary program, the Supportive Living Program, which the state of Illinois initiated after "apply [ing] for and receiv[ing] a waiver of Medicaid's normal rules" in order to provide "home and community-based services." SeeBertrand, 495 F.3d at 454 (citing 42 U.S.C. § 1396n(c)(1) ). Under § 1396n(c)(1), a participating state may offer services in community settings to qualified individuals who: (a) but for the provision of such services, would require a level of institutional care such as a nursing home; (b) are members of a target group that is included in the waiver; (c) meet applicable Medicaid financial eligibility criteria; (d) require one or more waiver services in order to live in the community; and (e) have the right to participate in the waiver program in lieu of receiving institutional care. See Am. Compl. ¶ 64.

In total, the state of Illinois operates nine separate "Home and Community–Based" waiver programs. Each program targets a different segment of the state's population. See http://www2.illinois.gov/hfs/MedicalPrograms/HCBS/Pages/default.aspx (last visited Aug. 2, 2015). The waivers are: Children and Young Adults with Developmental Disabilities ("DD")–Support Waiver; Children and Young adults with DD–Residential Waiver; Children that are Technology Dependent/Medically Fragile; Persons with Disabilities; Persons with Brain Injuries ; Adults with Developmental Disabilities; Persons who are Elderly; Persons with HIV or AIDS; and the Supportive Living Program. Id.

For an applicant to qualify for the last in the foregoing list of programs, the Supportive Living Program, he or she must:

1) be age 22 years or over with a disability (as determined by the Social Security Administration) or elderly (age 65 years or over);

2) be screened by the DHFS or other State agency screening entity and found to be in need of nursing facility level of care and that Supportive Living Facility placement is appropriate to meet the needs of the individual;

3) be without a primary or secondary diagnosis of developmental disability or serious and persistent mental illness, as determined by a qualified Department of Human Services screening agent; and

4) have his or her name checked against government offender websites and databases.

See 89 Ill. Adm. Code § 146.220(a).³

If an individual satisfies these and other criteria, then a Supportive Living Facility ("SLF") may admit or retain that individual as a resident. An SLF is

a residential setting in Illinois that provides or coordinates flexible personal care services, 24 hour supervision and assistance (scheduled and unscheduled), activities, and health related services with a service program and physical environment designed to minimize the need for residents to move within or from the setting to accommodate changing needs and preferences; has an organizational mission, service programs and a physical environment designed to maximize residents' dignity, autonomy, privacy and independence; and encourages family and community involvement.

See 89 Ill. Admin. Code § 146.200.

B. The Individual Plaintiffs

1. O'Connor

O'Connor is a recipient of Social Security disability payments. Her physical disabilities range from a severe heart condition and ruptured discs to diabetes, neuropathy, and recurring bleeding ulcers. These conditions affect her mobility, equilibrium, and physical endurance. O'Connor also suffers from mental health disabilities, including a "longstanding disorder," which, without medical treatment, interferes with her "work, housekeeping, personal care, and relationships." Am. Compl. ¶ 113.

In October 2012, O'Connor was hospitalized. Before she was discharged, the hospital's discharge planner provided O'Connor with information regarding SLFs. O'Connor thereafter called the Fox Valley location of defendant Eden Supportive Living ("Eden"), an SLF regulated by DHFS. Eden provides apartment-style housing and health-related services to those who are elderly (over age 65) and persons with physical disabilities age 22 and older.

During the call, the Eden representative asked O'Connor several health-related questions. O'Connor informed the representative that she had heart problems, diabetes, and a mental health diagnosis not specifically described in the Amended Complaint. The representative responded that Eden did not accept residents with her mental health diagnosis and hung up the phone.

In November 2012, O'Connor was readmitted to the hospital and again contacted Eden upon being discharged. This time, she spoke to a different representative about becoming a resident. O'Connor informed the representative that she had heart disease and diabetes, but she did not disclose her mental health diagnosis. The Eden representative stated that O'Connor could view the facility after she was prescreened by a nearby location of the Division of Rehabilitation Services ("DRS").

O'Connor called the DRS location and spoke to two different employees. She informed them that Eden had referred her for prescreening, but neither employee was familiar with the screening process for the Supportive Living Program. O'Connor then called Eden and left a voicemail indicating that she was unable to schedule the screening. An Eden representative returned her call to inform her that Eden had scheduled a "Determination of Needs" prescreening with DRS for her on December 6, 2012.

On December 4, 2012, however, O'Connor called Eden to inquire "if it would be a problem if she had her particular mental health diagnosis." Id. ¶ 126. The Eden representative told her that Eden would not accept her "if she had any mental health diagnosis, including, for example, a diagnosis of depression." Id. ¶ 127 (emphasis in original).

As a result of this "rejection by Eden," O'Connor became homeless. Id. ¶ 130. O'Connor alleges that she "requires no additional supportive services from Eden as a result of her mental health diagnosis." Id. ¶ 128.

2. Mormino

Mormino is also a recipient of Social Security disability benefits. Her physical disabilities include chronic obstructive pulmonary disease, hypertension, hypothyroidism, GERD, obstructive sleep apnea, neuropathy, arthropathy, and diabetes. These disabilities impair Mormino's performance of daily living activities, such as walking, grocery shopping, meal preparation, and cleaning. She uses assistive devices for mobility.

In 2005, Mormino applied to reside in an Eden SLF...