‘A Troubling Trend’: Sudden Closures, Bankruptcies, Displaced Residents in State Put Extra Pressures on Nursing Homes

Nursing home closures and bankruptcies continue among many states, putting pressure on existing nursing homes to take on extra residents even as the workforce shortage persists and challenging staffing requirements are on the horizon.

The latest closure in Pennsylvania led to the evacuation of Mountain View Care and Rehabilitation Center residents on Friday, relocated to other facilities. Providers at the facility pointed toward “physical plant issues” that contributed to the abrupt closure, but more details weren’t provided, according to a report from WBRE/WYOU.

Zach Shamberg, president and CEO of the Pennsylvania Health Care Association (PHCA), said the closure is very serious and could have a large impact on the care crisis among facilities in the state.

“It is extremely difficult for providers to immediately bring in residents without the number of staff available,” Shamberg told WBRE/WYOU. He was in communication with PHCA members as many operators tried to figure out the next steps for these residents and their families.

As of February, the nursing home industry has witnessed a concerning uptick in abrupt closures across other states including New Jersey, Missouri, California and Vermont, again displacing residents and threatening future access.

A tough economic environment, stubborn staffing problems, a frequent change of ownership in the sector, complex and punitive survey processes and fines, and shifts in federal regulation are all contributing factors in closures across the country, leaders have said.

In the last few weeks, the state has seen a nursing home chain declare bankruptcy, the announcement of two facility closures in Pittsburgh ahead of the emergency evacuation at Mountain View, Shamberg said.

“If you have a loved one in long-term care, know that this is a very troubling trend we have seen in Pennsylvania,” Shamberg explained.

Lakewood Rehabilitation and Health Care Center was one facility that got the call from Mountain View to take on residents.

Meanwhile, Atlanta-based LaVie Care Centers, which has nine facilities in Pennsylvania, filed for Chapter 11 bankruptcy over the weekend. LaVie operates 43 skilled nursing and assisted living facilities across five states. The company divested more than 90 facilities since the start of the pandemic and currently employs 3,600 staff.