Part 4: A dysfunctional system
A jumble of state-by-state rules let a chain of horrors grow.
"Of course, I have told friends about Alterra and now tell them what is really going on and would NEVER EVER recommend it."
Schulte would not comment on that letter, but made it clear that he considers such opinions rare. He noted that fees for most assisted-living homes, like Brookdale's, are paid by the residents or their families.
"The consumer, if they thought this was so risky, they would vote with their feet and we wouldn't be able to attract residents," he said.
Alterra's Legal Troubles
More than 220 residents nationwide are alleged to have suffered neglect, injuries or death as a result of Alterra's substandard care between 1999 and 2003.
54 of those claims alleged wrongful death.
Settlements totaling $15.9 million were reached in 53 cases of resident injury or death. Another $4.3 million is set aside for possible settlement in 20 other cases.
The actual amount plaintiffs stand to receive will vary depending on insurance coverage. On claims covering periods when Alterra lacked insurance, plaintiffs will recover only a small percentage of the dollar figure of their settlement.s.
Alterra admitted no wrongdoing in the cases.
SOURCE: Federal bankruptcy court filings
Contact staff writer Nancy Phillips at 215-854-2254 or nphillips@phillynews.com.




