Prescott Manor Nursing Home has defaulted on its lease, failed to pay employees, and lacks sufficient funds to feed clients and pay for supplies.
Those problems and others were cited in Nevada County Circuit Court documents filed this week by the Arkansas Department of Human Service.
DHS added Prescott Manor to a list of five Arkansas nursing homes that it wants placed in receivership. Requests were filed in courts in the counties where these facilities are located.
All five facilities are owned by Keith Head.
The action came after surveyors from DHS’s Division of Provider Services and Quality Assurance (DPSQA) Office of Long-term Care spent several days monitoring facilities in Prescott, Jonesboro and Star City.
Earlier this week, the state filed requests for receivership against Arlington Cove Healthcare in Trumann, 35 residents; and Deerview in Ola, 32 residents.
The latest facilities for which DHS filed a request for receivership are Prescott Manor Nursing Center in Prescott, 54 residents; Lexington Place Healthcare & Rehab in Jonesboro, 93 residents; and Lincoln Heights Healthcare in Star City, 53 residents.
Office of Long-term Care surveyors have been on site at all five facilities since September 25 after officials learned of payroll issues occurring at Lexington Place on September 24.
“We are taking these steps to ensure the health and safety of the residents living at these facilities,” said DPSQA Director Jerry Sharum. “We will stay at these facilities until we can be assured residents are getting the services they need, and the staff is getting the necessary supplies needed to care for the residents.”
If the requests are approved by a judge, the state will temporarily run these facilities to make sure employees are paid, food is purchased, medications and treatments are administered, and the facility will continue to operate and offer the critical services that residents need.
The DHS complaint against Prescott Manor said that it “appears to be financially unable to secure or maintain continuing and regular sources of food, medicines, services and supplies necessary for the safe and continued operation of the facility.”
“It is also uncertain and questionable whether the facility can maintain the minimum staffing levels necessary for the safety, security and welfare of the residents due to its financial inability to regularly meet its current and future payroll obligations,” the complaint said.
The complaint included an affidavit by Linda Smith, a registered nurse who is employed by DHS. She was assigned to monitor Prescott Manor, which is owned by Head and Cathy Parsons and managed by H.O.P.E. Healthcare, LLC, which is owned by Head.
Smith said Prescott Manor is in default on its lease agreement for the facility at 700 Manor Drive for non-payment of rent in July, August and September.
Prescott Manor’s medical supplies are “extremely low, and the facility is unable to secure ongoing medical supplies because its medical supply vendor stopped deliveries to the facility due to repeated non-payment of invoices,” Smith’s affidavit said.
Prescott Manor has also been unable to pay employees on a timely basis, she said. Fourteen workers, including direct care employees, have been unable to cash their paychecks or had them returned due to insufficient funds.
Checks that Prescott Manor has written to pay invoices have been returned due to insufficient funds. Operating accounts have minimal or negative balances. Smith is concerned that Prescott Manor is unable to maintain a stable and ongoing supply of food, Smith wrote.
Irregularities in the facility’s resident trust account are under investigation.
Smith reported that D&D, Prescott Manor’s vendor of supplies, will no longer make deliveries due to unpaid bills. “The facility currently had enough supplies to last for a few days, at best,” she wrote.
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