DHS, Skyline agree to extend receivership for troubled nursing facilities

The Arkansas Department of Human Services and Skyline Healthcare agreed Tuesday that a temporary receivership order issued Friday for two nursing homes will stay in place for 30 days.

DHS announced last week that it had filed complaints to place Spring Place Health & Rehab in Hazen, and Dierks Health & Rehab in Dierks in temporary receivership because of New Jersey-based Skyline’s deteriorating finances. The Hazen home serves 39 residents, and the Dierks facility serves 52. The company operates 19 other facilities in Arkansas.

Circuit judges in Prairie and Howard counties transferred the nursing homes to temporary state control on Friday. Affiliates of Reliance Health Care in Conway are temporarily managing day-to-day operations.

DHS spokesperson Amy Webb said Wednesday that the agreement between the department and Skyline negates the need for a judicial hearing.

“Essentially Skyline agreed, ‘OK, we’ll keep it in receivership for 30 days.’ They’re not fighting it,” she said.

After 30 days, another plan will be needed. Those included “Potentially a sale. If not, we’ll go to court or work out some longer-term solution with Skyline,” Webb said.

DHS learned May 2 that the two Skyline facilities would no longer be extended credit by a lender and sent surveyors to the facilities the next day, said DHS spokesperson Marci Manley. The Office of Long Term Care learned of concerns regarding the food supply and that a vendor might not continue delivering food.

“While no residents went without meals, surveyors did find that the facilities lacked a proper fresh food supply, and that was particularly concerning given that we were heading into a weekend,” Manley wrote in an email.

DHS began watching the 21 Skyline facilities in Arkansas several weeks ago after news outlets elsewhere reported on the company’s financial troubles.

“We’re monitoring them very closely,” Webb said. “We’re actually at the facilities. We’re making sure people are safe, they have the care they need, the services they need, the food they need, and if we see any issue, then we’ll take action.”

Manley said DHS has been in discussions with other operators “who have indicated they would be willing to step in to provide stability, if necessary.”

Skyline facilities also have gone into receivership in other states, including South Dakota, Pennsylvania, Kansas and Nebraska. On Wednesday, the website that is listed on Skyline’s LinkedIn page returned an error message.

The last time the state took over a nursing home was in the 1980s, Manley said.

The other Skyline facilities are: Batesville Health and Rehab; Broadway Health and Rehab; Capital Health and Rehabilitation Center; Creekside Health and Rehab; Fort Smith Health and Rehabilitation Center; Heritage of Hot Springs Health and Rehab; Hillview Post Acute and Rehabilitation Center; Homestead Health and Rehabilitation Center; Jonesboro Health and Rehab; Lindley Healthcare and Rehabilitation Center; Little Rock Post Acute and Rehabilitation; Madison Healthcare and Rehabilitation Center; Magnolia Health and Rehab; Mine Creek Health and Rehab; Mountain View Health and Rehabilitation Center; North Little Rock Health and Rehabilitation Center; Ozark Terrace Health and Rehabilitation Center; Searcy Health and Rehab; and White Hall Health and Rehab.