Attorney General Bonta Conditionally Approves Change in Control, Governance of Mercy Retirement and Care Center to Transforming Age

OAKLAND – California Attorney General Rob Bonta today announced his conditional approval of the change in control and governance of Mercy Retirement and Care Center (MRCC) owned and operated by Elder Care Alliance, a nonprofit public benefit corporation to Transforming Age (TA), a Washington nonprofit corporation. The Attorney General’s conditional approval would allow MRCC to become a part of TA’s multi-institutional nonprofit system that includes senior living, affordable housing, and home and community-based services. Under California law, any transaction involving the sale or transfer of control of a nonprofit healthcare facility must secure the approval of the Attorney General.

“When reviewing healthcare transactions, my office’s primary priority is to protect the well-being of Californians,” said Attorney General Bonta. “After a thorough review process, I am confident that this transfer of control and governance to Transforming Age will ensure the level of care that Mercy Retirement and Care Center residents have come to expect. With TA’s strong performance, coupled with our conditions, this transaction will protect the health and safety of the residents and allow them to receive continued care and services.”

MRCC currently operates a continuing care retirement community, which specializes in affordable housing for the elderly in Oakland, California. TA is a nationally recognized organization currently serving more than 100,000 older adults. Given TA’s high ratings and reviews from the Centers for Medicare and Medicaid Services, Attorney General Bonta expects the change in control and governance to be beneficial for MRCC’s residents.

As part of his conditional approval, Attorney General Bonta has imposed specific conditions for the transfer including:

• Keeping the same type and level of services being provided to residents.
• Maintaining and continuing to employ staff who are in good standing.
• Ensuring continued participation in Medi-Cal and Medicare for eligible patients.
• Honoring all residents’ contracts.
• Establishing a Community Advisory Board for at least five years.
• Complying with nondiscrimination rules in the provision of services.

The California Department of Justice’s Healthcare Rights and Access Section (HRA) works proactively to increase and protect the affordability, accessibility, and quality of healthcare in California. HRA’s attorneys monitor and contribute to various areas of the Attorney General’s healthcare work, including nonprofit health facility transactions; consumer rights; anticompetitive consolidation in the healthcare market; anticompetitive drug pricing; privacy issues; civil rights, such as health equity, reproductive rights and LGBTQ healthcare-related rights; and public health work on tobacco, e-cigarettes, and other products.

A copy of the conditional approval letter is available here.