Kansas Takes Over Care Facilities Amid Reports of Insolvency

The state of Kansas took over management of a skilled nursing facility in Nortonville, Kan. after reports of insolvency, the Atchison Daily Globe reported.

Tim Keck, secretary for the Kansas Department for Aging and Disability Services (KDADS), was granted a a temporary appointment of receivership for several care and residential locations operated by Pinnacle Management Company. The appointment of receivership comes from a restraining order motion heard on August 31 in Jefferson County District Court against Pinnacle.

That order stemmed from concerns about about insolvency and deficient practices that could endanger the wellbeing of residents at Village Villa, a skilled nursing facility, and Village Estates, an assisted living facility, according to court documents obtained by the Atchison Globe. The issue is currently on hold, pending a decision by the Kansas Supreme Court, but Tampa, Fla.-based Mission Health Communities will oversee operations of Pinnacle’s residential care holdings, including the Nortonville facilities, according to the publication.

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Village Villa is licensed for 45 beds, while Village Estates is licensed for eight beds.

Officials with KDADS stepped in after getting an anonymous complaint on August 10 that Pinnacle did not meet its August 7 payroll obligations to its employees; the tip also referred to overdraft fees charged to the facility, bounced payroll checks and claims that residents’ trust fund money was used to pay employees.

In addition, Village Villa was delinquent on quality care assessment payments and owed about $9,203 in bed taxes to the state at the time of an August 21 survey, the publication reported.

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Pinnacle also failed to pay $224,730 to a therapy vendor at Village Villa and the Providence Living Center in Topeka, Kan.; KDADS’ application for receivership, which was filed in Jefferson County District Court on September 5, specifically cited insolvency concerns surrounding the back payments.

Mission Health representatives reported other concerns besides the halted therapy services when they temporarily took over management at Village Villa and Providence; these included no working laundry facilities, no vendor housekeeping services, and incomplete payroll-based journal data, according to the Atchison Daily Globe.

Written by Maggie Flynn

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