Finances of Martino retirement homes under scrutiny by regulatory authority

Ontario's retirement homes regulator has taken the unprecedented step of imposing strict new licence conditions that target the finances of homes belonging to the Martino families.

The conditions require the six retirement homes still in operation by the Martinos to provide the Retirement Homes Regulatory Authority detailed statements of revenues and expenditures within two weeks and at such other intervals as requested by the RHRA."

The conditions have been applied to the licences of Cathmar Manor, Dundas Retirement Place, Montgomery Retirement Home, Northview Seniors Residence, Greycliff Manor in Niagara Falls, and Sheridan Lodge in Brantford.

The RHRA felt it's important for us to have line of sight to the financial condition of these homes," said Kathryn Chopp, spokesperson for the RHRA. Retirement homes' financial situation has a lot to do with their ability to provide the care and accommodation that the residents need.

It's really about resident protection and helping us to get a full picture of, essentially, the stability of those homes.

We've been monitoring these homes closely for the past year," Chopp added. We wanted this extra level of assurance."

In the past year, the RHRA has reported more than 120 violations in five homes owned by the Martino families, including 35 violations at Cathmar and 65 at Greycliff. Both of those homes are already facing previous orders to comply issued by the RHRA for earlier violations.

Brothers Aldo Martino and the late John Martino were previously responsible for the largest nursing home bankruptcy in Ontario when the Royal Crest Lifecare chain collapsed in 2003.

The Martino families also own the now-closed Rosslyn Retirement Home, site of a horrific COVID-19 outbreak in May that killed 16 people, and Emerald Lodge, which is now in receivership and was evacuated by the City of Hamilton on Oct. 23.

The Martino families indicated in a brief statement they are aware of the new licence conditions.

My client intends on complying with all RHRA orders," said Robert Brown, lawyer for the Martino families.

Specifically, the new conditions slapped on the Martinos' homes require the operators to provide:

• A statement of all expenditures including all expenses related to mortgages, utilities, staffing, maintenance and pest control, the provision of care services, insurance, food, and pharmacy-related expenses;

• A statement of all revenues including rent from residents and revenue from residents for the provision of care services;

• A statement confirming which expenses for the preceding two-week period have been paid and a plan to ensure payment of any unpaid expenses.

The conditions also require the Martinos to notify the RHRA of the following:

• Any missed payments to staff, contractors, or vendors, as well as details about the nature of the missed payments;

• Any notices, orders, directives, or other documents issued by the local fire service, public health unit, or the municipality;

• Any resignation of a staff member due to lack of payment or workplace conditions;

• Any pending service cancellations from a utility or other service providers.

Last week, the city announced it won't provide a licence or any further subsidies for residents for the foreseeable future" if Emerald Lodge tries to reopen as a residential care facility.

On Nov. 3, Cathmar Manor and Greycliff Manor were ordered to immediately retain managers approved by the RHRA's registrar to oversee all operations of the facilities until further notice.

The registrar believes on reasonable grounds that the licensee cannot or will not properly operate the home without assistance," according to the RHRA's orders for both Cathmar and Greycliff.

Chopp said the two homes have complied with the orders and installed new management approved by the RHRA.

The Martinos indicated through their lawyer that they continue their efforts to arrange a bulk sale of their retirement homes and residential care facilities.

Chopp said even if the Martino families sell their retirement homes, the licences are not transferable. She said the RHRA would go through a robust" vetting process of the proposed new owners before issuing licences for the homes.

Of the 11 homes owned by the Martinos, the Rosslyn is closed and has had its licence revoked, Emerald Lodge is in receivership and has been emptied due to concerns over deteriorating conditions, and Edgemount Manor had its licence revoked in June and been sitting empty since a fire in September 2019.

Two of the homes - Cathmar and Greycliff - are now operating with managers approved by the RHRA. Montgomery Retirement Home and Dundas Retirement Place are both currently subject to orders to comply issued May 22, and Sheridan Lodge was cited on Oct. 21 for three violations of the Retirement Homes Act.

Steve Buist is a Hamilton-based investigative reporter at The Spectator. Reach him via email: sbuist@thespec.com