A third-party receiver has taken over a chain of 10 assisted living communities and 21 nursing homes after its owners failed to make payroll.
Nebraska state officials placed the Cottonwood Healthcare chain, which did business under the name Skyline, under receivership on March 23, reported several local media outlets including the Omaha World-Herald and the Columbus Telegram.
Officials with the state’s Department of Health and Human Services (DHHS) discovered last week that the New Jersey-based provider, which owns the properties, would not be able to pay its employees. Cottonwood was founded in 2016 and took over several assisted living communities and nursing homes previously operated by Golden Living.
“DHHS determined that receivership proceedings were necessary to protect the health and welfare of the residents of the nursing and assisted living facilities because Skyline was financially unable to pay staff and ensure the future care of the residents,” a release from the department said.
Public health officials worked with the state attorney general’s office to establish the receivership and obtain court approval, which came from a Lancaster County judge on Friday. Under the order, the Omaha, Nebraska-based Klaasmeyer & Associates will oversee operation of the facilities while a new owner is found or residents are relocated.
Employees at the facilities have not been paid for three weeks, and they found out last week the company lacked the funds to pay them. Residents at one facility were unable to get supplies such as wipes and toothbrushes, and the executive director needed to be called at one point to purchase vitamins for a resident, an employee there told the World-Herald.