The approximately 1,650 employees working at the 10 assisted living communities and 21 nursing homes in Nebraska that were put into receivership on March 23 were paid last week, according to the consulting firm that assumed operations.
Paychecks went out Friday, Linda Klaasmeyer of senior living consulting firm Klaasmeyer & Associates, based in Omaha, NE, told McKnight’s Senior Living.
The facilities are located across 19 counties in the Cornhusker State. The receivership occurred when their owner, Wood-Ridge, NJ-based Cottonwood Healthcare, also known as Skyline Healthcare, told the state Department of Health and Human Services that it did not have enough funds to pay employees and ensure the future well-being of residents. Cottonwood has operated the facilities since late 2016 under a lease agreement with an affiliate of Golden Living.
In a statement Thursday to McKnight’s Senior Living, a spokesman for Cottonwood said the temporary receivership was “due to external issues.” In a follow-up comment Monday, Michael Kosowski added that “much of it is related to the leases and Medicaid reimbursement rates and time frames,” although he said he could not elaborate on “certain nonpublic issues.”
“During the weeks leading up to the receivership, we worked tirelessly to continue to improve the operation of the facilities to better serve our residents and staff; however, issues beyond our control impeded our progress,” Kosowski said Thursday. “We maintain that since the receiver was appointed, we have done everything in our power to work with the state and temporary receiver to ensure the continued successful operation of the facilities.”
Most of the employees at the affected facilities continued in their positions after the court action, Ken Klaasmeyer told the Omaha World-Herald, and the assisted living communities and nursing homes continue to receive funding from Medicare, Medicaid and private-pay sources.
Additionally, he said, communities have held fundraisers for employees, and the Nebraska Hospital Association Research and Educational Foundation donated $100,000, which will be distributed to employees as $60 gift cards. Immanuel Communities, an Omaha-based operator of 11 communities offering affordable housing, independent living, assisted living, memory care or long-term care, also contributed $100 gift cards totaling $250,000 to workers through its Immanuel Vision Foundation, the media outlet reported. And the organization delivered food and supplies for residents.
Meanwhile, the Kansas Department for Aging and Disability Services announced March 28 that it asked to take over 15 Skyline skilled nursing facilities in that state “after the operator of the facilities advised the state that it will not be able to make an upcoming payroll.” Mission Health Care would operate the facilities. Skyline, the department said, “appears to be insolvent.”