Athena Health Care, once a dominant player in Connecticut’s nursing home sector, plans to close two more facilities in the state, further consolidating its operations as it struggles with financial difficulties stemming from staffing shortages, rising operational costs, and the need for costly building updates.

After the closures, which will impact 200 residents, Athena will operate only six nursing homes in the state. Just two years ago, Athena operated 22 nursing homes in Connecticut, making it the state’s largest chain.

The closures are part of a broader financial crisis facing Athena, according to an article in the News from the States. In a letter to staff at Countryside Manor, one of the facilities facing shutdown, CEO Larry Santilli cited a combination of factors leading to the decision, leaving the company with no choice but to close the facilities. This, despite high occupancy levels at both the facilities slated to shutdown, he said.

While the closures are a setback for Athena, the company has expressed its commitment to supporting affected residents, families, and employees. In a statement, Athena acknowledged the distress the closures would cause and assured that it would work closely with governmental agencies and the local ombudsman offices to facilitate the relocation of residents to other suitable facilities.

The closures are the latest chapter in Athena’s financial struggles. Over the past year, the company has sold 10 of its nursing homes to National Health Care Associates, a New York-based provider. These sales have been part of an ongoing effort to address its mounting financial issues, which have included overdue employee health care payments and back taxes totaling more than $750,000. Moreover, employees have reported severe delays in receiving medical treatment due to the company’s failure to pay health claims, further complicating the company’s relationship with its workforce.

Athena officials notified the state Department of Social Services (DSS) of the closures with letters of intent filed on Friday.

The state will now begin a process that could take up to six months, including public hearings where residents and staff can voice their opinions. DSS will have 180 days after the hearings to decide whether to approve the closures. The announcement of the latest closures follow the Centers for Medicare and Medicaid Services (CMS) ruling in September that led to the closure of one of its facilities due to failure to meet health and safety standards.