Facts

The State of California filed suit against Beverly Community Hospital Association, based on allegations that Beverly Community had engaged in unfair competition.

PLAINTIFF'S CONTENTIONS:
The state argued that Beverly Community had failed to comply with federal, state, and local laws regarding various medical screening, stabilization, discharge, and arrangement practices for dependent adults and disabled persons. Based on these practices, the state asserted a cause of action for unfair competition in violation of the California Business and Professions Code.

DEFENDANT'S CONTENTIONS:
Beverly Community Hospital Association denied all of the allegations in the state's complaint. Defendant contended that in the interest of avoiding litigation expenses and potential damages, which could have forced the hospital to cease its operations, the hospital agreed to an early settlement of this matter.

Result

The court ordered defendant to pay $250,000 in monetary relief to the state, and also granted an injunction, preventing Beverly Community from continuing its unfair practices. Among the restrictions imposed by the injunction, Beverly Community was enjoined from failing to perform necessary medical screening examinations, failing to discharge homeless patients to the homeless patient zone, and failing to implement a written discharge planning policy.