Chain of 21 Nursing Homes Placed in Receivership

A chain of 21 nursing homes is now under the control of a third-party receiver after its owners failed to make payroll.

Nebraska officials placed the Cottonwood Healthcare chain under receivership March 23, according to a Monday report in the Omaha World-Herald.

Officials at the state’s Department of Health and Human Services (DHHS) were alerted early on Friday that the Wood-Ridge, N.J.-based provider, which owns the facilities, would not be able to pay employees. Cottonwood, which was established in 2016 and is also known as Skyline, had taken over several assisted living facilities and nursing homes previously operated by Golden Living.


“DHHS determined that receivership proceedings were necessary to protect the health and welfare of the residents of the nursing and assisted living facilities because Skyline was financially unable to pay staff and ensure the future care of the residents,” a release from the department said.

Public health officials worked with the state attorney general’s office to establish the receivership and obtain court approval, which came from a Lancaster County judge late on Friday. Copies of the order were filed in the 19 affected counties.

Under the order, the Omaha, Neb.-based Klaasmeyer & Associates will oversee operation of the facilities while a new owner is found or residents are relocated.


Employees at the facilities have not been paid for three weeks, and they found out Friday the company lacked the funds to pay them, Ashley Schlotfeld, who works as a certified nursing assistant medication aide at Omaha Metro Care and Rehabilitation Center, told the World-Herald.

Residents at Schlotfeld’s facility were unable to get supplies such as wipes and toothbrushes, and the executive director needed to be called at one point to purchase vitamins for a resident, she told the publication.

Written by Maggie Flynn

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