Three More Arkansas Nursing Homes Fall into Receivership

Three more nursing homes with overlapping ownership have fallen into state receivership in Arkansas, bringing the total count to five.

The state’s Department of Human Services (DHS) moved to appoint a third-party receiver to take over Lexington Place Healthcare and Rehabilitation in Jonesboro, Prescott Manor Nursing Center in Prescott, and Lincoln Heights Healthcare in Star City, the Arkansas Democrat Gazette reported Friday.

Those properties had been on Arkansas officials’ radar since earlier in the week, when two other nursing homes owned by Keith Head and Cathy Parsons entered receivership amid dwindling medical supplies, payroll problems, and concerns about an ongoing ability to cover food and utility costs.

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The formal orders for the most recent receiverships were not available on the Arkansas court system’s website as of press time, though the DHS accused the properties of being “financially unable to secure or maintain continuing and regular sources of food, medicines, services, and supplies necessary for the safe and continued operation of the facility,” according to the Democrat Gazette.

Reliance Health Care, which took over the other two properties, will step in to operate the facilities on an interim basis, the publication reported; the paper was unable to reach Head, and an attorney for Parsons told the Democrat Gazette that she had not been involved in the properties since last year.

Head is listed in federal records as the 100% owner of the Star City and Prescott facilities, with a 75%-25% split of the Jonesboro facility between Head and Parsons, respectively. Parsons is also listed as a “managing employee” at the Star City location.

The receivership process typically aims to maintain the steady, uninterrupted operation of nursing homes until a permanent provider can take over; given the vulnerability of elderly residents at the facilities, continuous care is vital for their health and the future viability of the properties for new operators.

Just this week, seven properties formerly operated by Dycora Transitional Health and Living in Wisconsin emerged from receivership under new management; however, receivership can also result in closures, as was the case for multiple properties that had been run by Skyline Healthcare in Massachusetts.

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