BAKERSFIELD, CA -- The funeral director and owners of a Lake Isabella mortuary are responding to state allegations that their business failed to provide prepaid burial services.
The complaint was field against Sierra Valley Mortuary in Lake Isabella by the state attorney general's office.
Regulators say in one case, workers buried a woman in a hospital gown with a towel over her face, failing to perform embalming and cosmetology services for which they were paid.
In a second case, regulators say it received $9,200 from insurance for a woman's burial, but say the woman was cremated and returned to family members instead.
The company says through its attorney, that it's all a misunderstanding of the terms of the prepaid funeral arrangements, and financial complications of medi-cal eligibility requirements.
Its attorney offered this quote, among several others specifically related to the allegations. "Our review of both incidents alleged by the cemetery and funeral bureau suggests that the bureau may not be considering all of the facts."
The following statement was issued by Klein, DeNatale, Goldner:
Sierra Valley Mortuary, its funeral director, Brian Coates, and owners Charles Coates and partners will vigorously defend themselves against an administrative complaint filed by the state Cemetery and Funeral Bureau alleging they failed to provide prepaid burial services, according to their attorney.
The Lake Isabella company and its owners and operator, who are represented by attorney Barry Goldner with the law firm of Klein DeNatale Goldner, contend the dispute stems from a misunderstanding of the terms of the prepaid funeral arrangements and the financial complications of Medi-Cal eligibility requirements.
No date has been set for the state’s administrative hearing regarding Sierra Valley’s license. The mortuary owners and funeral director have filed a response denying the accusations.
“Based on our investigation, it appears that there has been no wrongdoing by Sierra Valley or its funeral director,” said Goldner in a news release Wednesday afternoon. “We believe that there is a fundamental misunderstanding, which we hope can be corrected as the facts come to light.”
The administrative proceeding relates to two pre-need contracts, which are contracts for funeral or burial services purchased before death. Services are then provided as the need arises.
“Our review of both incidents alleged by the Cemetery and Funeral Bureau suggests that the Bureau may not be considering all of the facts,” said Goldner.
The two disputed pre-need contracts were purchased in order for individuals to qualify for Medi-Cal. In a common strategy, individuals often purchase pre-need contracts in order to reduce their assets and quality for Medi-Cal benefits. Pre-need contracts are not considered assets for the purpose of Medi-Cal eligibility.
One disputed contract called for Sierra Valley to provide specified burial services, such as embalming, to an individual. Upon the individual’s death, Sierra Valley spent about 45 days unsuccessfully attempting to locate the decedent’s family to discuss burial arrangements, according to Goldner.
“By the time Sierra Valley concluded its search for the decedent’s family, it had become impossible to perform the exact services described in the pre-need contract. For example, it is not advisable to embalm a decedent when such a long period has elapsed since death,” Goldner said. “By necessity, Sierra Valley varied the services described in the pre-need agreement. However, the alternative burial services Sierra Valley provided exceeded the full value of the pre-need contract.”
“Regarding the second contract, the decedent’s family requested that Sierra Valley cremate the decedent, rather than bury her at a cemetery,” explained Goldner. “Sierra Valley followed the family’s instructions. With cremation being less costly than burial, unused proceeds remained in the pre-need contract following the cremation.”
“Because this pre-need contract involved complicated Medi-Cal planning and eligibility issues, returning the unused monies to the decedent’s family could subject the decedent’s estate to a reimbursement claim from the State of California for Medi-Cal services rendered. Sierra Valley has held the unused money, while seeking guidance on how it should handle the unused monies,” said Goldner.
“Sierra Valley, its owners, and its funeral director are puzzled by the Cemetery and Funeral Bureau’s decision to initiate this proceeding. Our hope is that once all of the information is fully considered, the bureau will agree that Sierra Valley appropriately fulfilled its responsibilities. We believe that Sierra Valley will be fully vindicated.”
The complaint was field against Sierra Valley Mortuary in Lake Isabella by the state attorney general's office.
Regulators say in one case, workers buried a woman in a hospital gown with a towel over her face, failing to perform embalming and cosmetology services for which they were paid.
In a second case, regulators say it received $9,200 from insurance for a woman's burial, but say the woman was cremated and returned to family members instead.
The company says through its attorney, that it's all a misunderstanding of the terms of the prepaid funeral arrangements, and financial complications of medi-cal eligibility requirements.
Its attorney offered this quote, among several others specifically related to the allegations. "Our review of both incidents alleged by the cemetery and funeral bureau suggests that the bureau may not be considering all of the facts."
The following statement was issued by Klein, DeNatale, Goldner:
Sierra Valley Mortuary, its funeral director, Brian Coates, and owners Charles Coates and partners will vigorously defend themselves against an administrative complaint filed by the state Cemetery and Funeral Bureau alleging they failed to provide prepaid burial services, according to their attorney.
The Lake Isabella company and its owners and operator, who are represented by attorney Barry Goldner with the law firm of Klein DeNatale Goldner, contend the dispute stems from a misunderstanding of the terms of the prepaid funeral arrangements and the financial complications of Medi-Cal eligibility requirements.
No date has been set for the state’s administrative hearing regarding Sierra Valley’s license. The mortuary owners and funeral director have filed a response denying the accusations.
“Based on our investigation, it appears that there has been no wrongdoing by Sierra Valley or its funeral director,” said Goldner in a news release Wednesday afternoon. “We believe that there is a fundamental misunderstanding, which we hope can be corrected as the facts come to light.”
The administrative proceeding relates to two pre-need contracts, which are contracts for funeral or burial services purchased before death. Services are then provided as the need arises.
“Our review of both incidents alleged by the Cemetery and Funeral Bureau suggests that the Bureau may not be considering all of the facts,” said Goldner.
The two disputed pre-need contracts were purchased in order for individuals to qualify for Medi-Cal. In a common strategy, individuals often purchase pre-need contracts in order to reduce their assets and quality for Medi-Cal benefits. Pre-need contracts are not considered assets for the purpose of Medi-Cal eligibility.
One disputed contract called for Sierra Valley to provide specified burial services, such as embalming, to an individual. Upon the individual’s death, Sierra Valley spent about 45 days unsuccessfully attempting to locate the decedent’s family to discuss burial arrangements, according to Goldner.
“By the time Sierra Valley concluded its search for the decedent’s family, it had become impossible to perform the exact services described in the pre-need contract. For example, it is not advisable to embalm a decedent when such a long period has elapsed since death,” Goldner said. “By necessity, Sierra Valley varied the services described in the pre-need agreement. However, the alternative burial services Sierra Valley provided exceeded the full value of the pre-need contract.”
“Regarding the second contract, the decedent’s family requested that Sierra Valley cremate the decedent, rather than bury her at a cemetery,” explained Goldner. “Sierra Valley followed the family’s instructions. With cremation being less costly than burial, unused proceeds remained in the pre-need contract following the cremation.”
“Because this pre-need contract involved complicated Medi-Cal planning and eligibility issues, returning the unused monies to the decedent’s family could subject the decedent’s estate to a reimbursement claim from the State of California for Medi-Cal services rendered. Sierra Valley has held the unused money, while seeking guidance on how it should handle the unused monies,” said Goldner.
“Sierra Valley, its owners, and its funeral director are puzzled by the Cemetery and Funeral Bureau’s decision to initiate this proceeding. Our hope is that once all of the information is fully considered, the bureau will agree that Sierra Valley appropriately fulfilled its responsibilities. We believe that Sierra Valley will be fully vindicated.”