Black Hills Receiver LLC, announced on Wednesday, Nov. 14, that it has determined that it is in the best interest of the residents, under the circumstances, to carefully plan for and pursue closure of two skilled nursing facilities, the Mobridge Care and Rehabilitation and Madison Care and Rehabilitation Centers.
The Mobridge Care and Rehabilitation Center is a medium facility with 89 beds and has for-profit, corporate ownership.
According to Derrick Haskins of the South Dakota Department of Health, in order to close a nursing facility, it must provide the Department of Health, residents, and their families with 60 days notice and ensure that all patients have appropriate transfer plans in place prior to closure.
According to court documents filed in Hughes County on Nov. 13, the Mobridge and Madison facilities Black Hills Receiver, LLC, will cease new admissions, give 60-day notice in advance of closure to residents, assistance to residents in identifying other nursing facilities, meetings with residents and family members about the closure, and requests to treating physicians for medical assessments to facilitate transition planning.
In this case, since the facility is also in receivership, Black Hills Receiver, LLC, will also need permission from the sixth circuit court. A hearing is scheduled for Nov. 28 before the Hon. Patricia J. DeVaney.
DeVaney was appointed to the bench in 2012. Prior to her appointment, she served as an assistant attorney general for the state of South Dakota.
According to court documents filed in Hughes County on Nov. 13, Black Hills Receiver, LLC, outlined its efforts to stabilize nursing facilities where “imminent risks to the care and safety of the residents” had been reported earlier this year. Overall, the 19 nursing facilities are “operating at a significant and unsustainable loss,” according to court documents. That is a combined loss of approximately $7.7 million. By closing the two with the most significant losses, the receiver hopes to maintain operations in other facilities.
According to those documents Black Hills Receiver, LLC, believes that the financial prognosis for the Mobridge and Madison facilities is very poor due to various operational difficulties, including difficulties with hiring and retaining permanent staff for those facilities (resulting in extremely high usage of temporary labor). The documents also point to damage to the Mobridge facility caused by the July 4 thunderstorm in which 95-mile per hour winds hit Mobridge. Water damage, due to the storm caused the facility to close parts of the facility.
The court documents state Black Hills Receiver, LLC, does not believe that there is any way to generate sufficient funds to cover the expenses for operating the Mobridge and Madison facilities in a cash-flow positive manner. The firm estimates that by the end of the year, the losses for these two facilities will be in excess of $1.2 million.
According to Black Hills Receivership, the South Dakota Department of Health has been notified of the request to close the facilities and closure plans have been submitted to ensure federal requirements are met.
On May 1, 2018, nineteen South Dakota healthcare facilities formerly operated by Skyline Healthcare affiliates were placed in receivership with Black Hills Receiver, LLC, in an effort to stabilize their operations. Since then, Black Hills Receiver, LLC, has provided operational expertise and critical administrative support services to enable the employees of these facilities to focus on delivering quality resident care.
– Katie Zer