Norfolk, area facilities placed under receivership

March 25, 2018 GMT

Twenty-one nursing home facilities across Nebraska — including several in Norfolk and area communities — were placed under state control Friday because of financial factors.

The facilities — a combination of nursing homes and assisted living facilities — all are owned by Cottonwood Healthcare, known as Skyline and based in Wood Ridge, N.J. The company was founded in 2016 and subsequently took over a number of nursing homes and assisted living facilities that had been previously operated by Golden Living.

Matt Litt, a spokesman for the Nebraska Department of Health and Human Services, said state officials were alerted early Friday that Cottonwood would be unable to make its payroll obligations. State officials then worked with the Nebraska Attorney General’s Office to set up a receivership and get it approved in court.

A Lancaster County judge signed off on the plan late Friday, and copies of the order were filed in the 19 counties. The order appointed Klaasmeyer & Associates to manage the facilities while a long-term plan is worked out.

Litt said HHS officials would be working through the weekend to ensure that residents of the facilities are being cared for and that employees are getting paid.

In Norfolk, the facility affected is the Norfolk Care and Rehabilitation Center, 1900 Vicki Lane. It serves as both a nursing home and assisted living facility.

The other facilities in Northeast and North Central Nebraska now under receivership are in Columbus, Hartington, Neligh, O’Neill, Schuyler, Tekamah and Wausa. Some are exclusively nursing homes, and others, like the facility in Norfolk, also offer assisted living services.

All of the facilities have similar names featuring the location and followed by “care and rehabilitation center.”

Litt said Klaasmeyer & Associates will oversee operations of all of the facilities until a new owner is identified or residents are moved to another facility. The department of health and human services will provide oversight throughout the process to ensure a safe and orderly transition and maintain the safety and well-being of residents, he said.

If needed, the Center for Medicare and Medicaid Services has authorized the use of civil money penalty funds for the nursing facility operations to ensure the safety and well-being of residents, he said.

Elsewhere in the state, affected facilities are located in Omaha, Valley, Plattsmouth, Broken Bow, Cozad, Franklin, Fullerton, Grand Island, Nebraska City, Scottsbluff and Sidney.