A Receiver Is Appointed For 8 Nursing Homes In Financial "crisis"

The fate of eight financially troubled Iowa nursing homes rests largely in the hands of a state district court judge and the receiver in Kansas City, Mo., appointed to oversee a dispute over $133,000 in failed payments from July rent.

Rebecca Brommel, an attorney representing the facility’s operating companies, told the Des Moines Register that the companies were unable to reach an agreement with the owners on how to mitigate the additional financial impact on the nursing homes and who are in the process of finding a new “party” to take over operational control.

Representatives of the eight homes, which have at least 450 beds between them, reported that they were in a “drastic” financial situation. None has more than 40 days of operating cash available, the company representing the plaintiff owners told Judge David Nelmark. The judge appointed attorney Michael Flanagan receiver.

“We’re going to take the time necessary to stabilize them,” Flanagan told McKnight’s Long-Term Care News on Monday. He said the only issue the court is concerned with at the moment is “unpaid rent”.

The operating companies involved are: OpCo Clinton, IA, LLC; OpCo Keosauqua, IA, LLC; OpCo Newton, IA, LLC; OpCo Urbandale, IA, LLC; OpCo Sioux City, IA, LLC; OpCo Sigourney, IA, LLC; OpCo Keota, IA, LLC; and OpCo Four Seasons IA, LLC and its guarantor, HoldCo Tabletop, LLC.

Not only does the receiver worry

The news of the eight struggling facilities comes after 11 nursing homes in the state have closed since December 2021, the Iowa Healthcare Association noted. Another nursing and assisted living provider, QHC, is currently in bankruptcy.

Both Brommel and the IHCA said the facility’s fate is a reflection of broader problems over the past year.

“Long-term care facilities in Iowa and across the country have faced significant financial stress due to COVID, inflation, supply chain issues and labor shortages, and these facilities are no different,” read Brommel’s statement to the court, which he shared with McKnight’s. . “The operating companies continue to put the health and safety of residents first and are working cooperatively with the newly appointed receiver and their selected management company as they take over operations.”

The IHCA said the closures were largely due to the financial stress of inflation, supply chain issues and labor shortages. Industry leaders have called for increased government support so workers can earn more.

While they face many of the same pressures that non-healthcare companies now do, nursing homes cannot respond to those pressures in the same way that other companies do, the president and CEO told reporters of the Iowa Health Care Association, Brent Willett.

“And so we are experiencing ongoing and devastating financial losses, which unfortunately have begun to lead to the closing of nursing homes across the state of Iowa,” he said.

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