Owner of Two Arkansas Nursing Homes Ceases Financial Support Leaving the Facilities Without Necessary Supplies
After the abrupt abandonment by the owner of two Arkansas nursing homes, the responsibility of both facilities fell to the previous manager who told reporters that she did not have the financial resources to continue long-term operation of the nursing homes.
The administrator for one of the facilities reported that she had no option but to activate an emergency plan to relocate residents to other facilities who have the capacity to care for them.
Although most of the residents did not seem to blame the facilityās staff members for what had happened, the process of being told that they would have to relocate within a couple of days was traumatic for both the residents and staff members.
The state did not take over the two facilities as some of the staff would have preferred because they believed it would have been less traumatic for the residents. However, a spokesperson for the stateās Human Services Department communicated the state only considered intervention through receivership āto the extent that we recognized it was an option.ā She further wrote, “We determined it was not appropriate in this case because the administrator was doing what she needed to do to keep the residents safe. When she determined that she could not meet their care needs due to her financial circumstances, she implemented her existing procedures to transfer the residents to a safe place,”
The spokesperson also suggested that relocating residents is the responsibility of administrators and staff members. She also stated state monitors have been on-site during the process.
Compliance Perspective
Failure by an owner or managing company to support a nursing home by supplying the needed financial resources for food, supplies, adequate staffing, etc., may result in the facility failing to maintain substantial compliance with state and federal requirements, in violation of those laws.
Discussion Points:
- Review policies and procedures regarding financial responsibilities related to meeting the needs of residents. Also review the adequacy of the facilityās emergency plan, including relocation of residents should a financial or other significant crisis occur.
- Train staff to follow the facilityās policies and procedures for relocating residents in an emergency situation.
- Periodically audit to determine if the facility receives adequate financial support to ensure substantial compliance with state and federal laws.
