By Charles Wolfe
The Associated Press
LOUISVILLE - The woman suing Gov. Paul Patton for sexual harassment went to federal bankruptcy court Friday to try to prevent the state from shutting down her debt-ridden nursing home.
The Cabinet for Health Services wants a U.S. Bankruptcy Court judge to allow it to revoke the license of Birchtree Healthcare and to remove its 12 remaining residents. Judge David Stosberg delayed a ruling and scheduled a Nov. 25 hearing to hear the agency's evidence.
The nursing home, at Clinton in far western Kentucky, figures prominently in a sex scandal involving Mr. Patton and Birchtree owner Tina Conner.
Birchtree filed for Chapter 11 bankruptcy protection in September. In addition to protecting Birchtree's license, the bankruptcy has staved off a foreclosure suit by First National Bank of Clinton, which loaned the company $2.7 million.
Ms. Conner had a two-year affair with Mr. Patton, which the governor has acknowledged. She alleges that the governor turned regulators loose on Birchtree in retaliation for her ending the affair.
Mr. Patton has denied the retaliation charge, which is being investigated by the FBI, Justice Department, Kentucky Attorney General's Office and the Executive Branch Ethics Commission. In a related development Friday, Ms. Conner was meeting with federal agents in Louisville.
Birchtree was dropped from the Medicare and Medicaid programs last summer and most of its residents were removed after a highly critical report by state inspectors. The facility now has 104 empty beds.
David Johnstone, a Cabinet for Health Services attorney, told Mr. Stosberg that Birchtree "over an extended period of time has demonstrated an unwillingness or inability" to keep itself up to state and federal regulatory standards for resident care.
"That's the only reason we are here today - to safeguard the residents of the facility," Mr. Johnstone said.
Ms. Conner did not comment after the court session. But Dan Dabney, a consultant who is managing Birchtree and has accused state inspectors of contriving violations, again charged a vendetta.
"This is just absolutely another attack by the Patton administration," Mr. Dabney told reporters. If Birchtree could receive an objective review "without getting into the sex and politics of it, we'd be fine," he said.
The judge said officials of the Clinton bank could conduct a "walk-through" inspection of the nursing home and the cabinet's inspectors also would be allowed on the premises.
The bank's attorney, Alan Stout of Marion, said the purpose of a walk-through was to make sure the building is in good repair and is still insured.
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