MN Department of Health Takes Control of Nursing Home to Ensure Residents’ Safety

The Minnesota Department of Health (MDH) assumed control of a nursing home in Pine Island due to concerns that a growing list of unpaid bills threatened critical services for residents. The Ramsey County court granted the temporary order to allow regulators to protect residents’ safety and ensure continued care at the facility while operations and management issues are addressed. MDH arranged for a professional management organization to serve as the facility’s managing agent during the receivership, and informed residents and staff of the change. 

MDH acted after staff found evidence that the facility’s growing list of unpaid bills and inability to meet payroll threatened staffing levels, critical services, and medications for residents. MDH and the temporary management team will stabilize the facilities’ operations to support staff and to ensure patients receive quality care. The facility has 52 residents and is licensed for 70 beds. 

Receiverships, authorized by state law, allow regulators to assume control of a nursing home in certain situations where there are serious health and safety concerns for residents. By law, the receivership cannot exceed 18 months. In a receivership, MDH becomes responsible for operations and finances of the nursing home and typically appoints a managing agent to conduct the daily work of managing the facility. 

Issue: 

Each resident must receive, and the facility must provide, the necessary care and services to attain or maintain the highest practicable physical, mental, and psychosocial well-being consistent with the resident’s comprehensive assessment and plan of care. Allowing a facility to be continually fiscally irresponsible and without resources necessary to employ adequate numbers of qualified staff, to pay suppliers, for building operations’ costs, and for mortgage expenses, may be considered provision of substandard quality of care, in violation of state and federal regulations, potentially resulting in fines and other sanctions. 

Discussion Points: 

  • Review policies and procedures regarding fiscal responsibility for paying bills on time and maintaining staffing levels and the resources needed to provide quality care for residents. 
  • Train staff regarding residents’ rights to be free from abuse, neglect, and exploitation and to report any suspected violation to their supervisor or through the Hotline. 
  • Periodically audit to determine that needed resources and supplies are available and staffing levels are adequate so that resident care needs are continually met. If concerns are identified that have potential to negatively impact quality resident care, report them to the compliance and ethics officer, a department manager, or through calling the anonymous Hotline.