Get "Error using UTL_FILE..." error running healthcheck & none of the suggestions in the mes (4249806)

I'm getting the following error when trying to read the alert_<SID>.log file. I have tried all the suggestions listed in the message and none of them helped me resolve the issue.

! Error using UTL_FILE
! Possible causes:
! 1) You don't have privileges to execute the UTL_FILE package.
! To verify, try executing this pl/sql block in Editor.
! If you don't have the required privileges, it will give an error.

declare
afile utl_file.file_type;
begin
if utl_file.is_open(afile) then
null;
end if;
end;

! 2) UTL_FILE_DIR initialization parameter does not include one of these lines:
! utl_file_dir=/oracle/QR1/saptrace/background
! utl_file_dir=*
! To verify, look under DBA -> Oracle Parameters
! 3) alert.log file name is not among the following:
! (if this is the case please inform Quest support)
! alert_QR1.log
! QR1alrt.log
! 4) No directory exists in the database for the OS path: /oracle/QR1/saptrace/background,
! or directory exists but privileges have not been granted for it.
! Toad attempted to use directory: TOAD_BDUMP_DIR. Verify READ/WRITE privileges on this directory.