Citing Unpaid Bills and Inadequate Care, Minnesota Health Department Temporarily Takes Over Nursing Home

As skilled nursing industry staffing shortages worsen and occupancy recovery slows, health officials in some states are taking matters into their own hands to ensure quality care is being administered at their facilities.

The Minnesota Department of Health recently assumed control of a small nursing home in the state, Twin City Gardens Nursing Home in Minneapolis, after being contacted by staff regarding concerns of the financial situation at the facility.

On-site investigations conducted between Oct. 12 and Oct. 21 revealed evidence of staff payroll checks being returned with insufficient funds and unpaid bills for oxygen, insurance and medications, the health department said in a press release.

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The nursing home owed $40,000 to its food supplier, $65,000 to its pharmacy and $10,000 to Xcel Energy, and had repeated incidents of inadequate care observed by department staff, The Star Tribune reported on Monday.

The state agency filed for receivership and assumed control of the facility on Oct. 22.

This is the first receivership taken by the department since 2015, the agency noted.

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“This rare step is one we do not take lightly, but the evidence indicated a need for immediate action to ensure that residents are safe and continue to receive essential services,” Minnesota Commissioner of Health Jan Malcolm said in the press release. “We are focused on a smooth transition that meets the needs of families, residents and staff.”

The temporary measure allows care to continue while operations and management issues at the facility are addressed.

Receivership cannot exceed 18 months but it allows regulators to assume control of a nursing home in certain situations where serious health and safety concerns for residents are present.

Skilled Nursing News attempted to contact Twin City Gardens Nursing Home but was referred to Scott Smith, one of the health department’s information officers.

“Due to concerns that the company’s growing list of unpaid bills threatened critical services for residents, and concerns about their health care services, MDH petitioned the court for permission to assume control of the nursing home through temporary receivership,” Smith said in an email to SNN.

Twin City Gardens is operated by PC Hayes Management LLC, which is owned and managed by Philip Thompson, and did not renew its nursing home license when it expired on Sept. 30, according to findings by a district court in Minnesota.

The facility houses 32 residents but is licensed for 50, the court said.

Multiple incidents of compromised care were referenced in the court’s findings, including the sharing of a blood glucose monitor between residents and not properly disinfecting the monitor between each use.

The facility reportedly lacked proper supplies to disinfect the monitor.

A recent survey from the Long-Term Care Imperative, a legislative collaborative between Care Providers of Minnesota and LeadingAge Minnesota, revealed that out of 124 nursing facilities surveyed, 70% were limiting admissions due to not having enough staff to care for residents.

It showed that around 20% of shifts in long-term care settings in the state were vacant and could only be filled with overtime or temporary staff, and that gap is widening with 1.5 times more resignations than hires in August.

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