Two Arkansas Skilled Nursing Facilities Enter Receivership as State Monitors Three Others

The state of Arkansas on Monday moved to put two skilled nursing facilities in receivership, pointing to an emergency situation that “threatens the health, safety, security, and welfare of the residents” in at least one of the facilities, according to court documents.

The Arkansas Department of Human Services (DHS) filed complaints in Yell County and Poinsett County for the Deerview and Arlington Cove Healthcare, respectively.

A spokeswoman for DHS pointed Skilled Nursing News to Arkansas CourtConnect for the complaints; only the complaint for Deerview was available at press time.

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Both Deerview and Arlington Cove are owned by Keith Head, who has a 75% ownership stake in each, and Cathy Parsons, who has a 25% ownership stake in each, according to Medicare.gov. The owners have agreed to DHS’s request for a receiver, according to the department’s press release.

At the Deerview facility, which had 32 residents as of Friday, medical supplies are low and could not be replenished because the vendor stopped deliveries, according to the DHS complaint. The facility had no insulin as of September 26 and was unable to provide pharmacy services; laboratory services are about to be shut off, the complaint states.

In addition, Deerview has struggled to make payroll and has bounced checks. DHS officials also reported concerns about the facility’s ability to pay for utilities and food, the complaint noted.

An affidavit filed by surveyor Jill Madden indicated that Deerview “recently received notice of default of its lease agreement for the building used by the facility,” due to nonpayment of rent for July, August, and September. That rent is currently in arrears, according to Madden.

The DHS is also monitoring three other SNFs with the same ownership: Lexington Place Healthcare & Rehab in Jonesboro, Ark., which has 93 residents; Lincoln Heights Healthcare in Star City, Ark., which has 53 residents; and Prescott Manor Nursing center in Prescott, Ark., which has 54 residents.

The state is working with an Arkansas-based nursing home owner that has agreed to temporarily step in and manage the buildings’ day-to-day operations. The move has to be approved by a judge, the DHS release noted.

The department has been monitoring the facilities since September 25; officials learned about payroll issues at Lexington Place on September 24.

The last time Arkansas had to file receivership complaints was in May 2018 for two facilities in Dierks and Hazen, Ark., both of which were owned by Skyline Healthcare.

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