State Takes Control of Sidney Nursing Home: Patients Not Endangered by Action

A Sidney nursing home and assisted living center are among a group of facilities across Nebraska affected by a move by the State of Nebraska. The state has taken control of 21 nursing homes around Nebraska because their owner couldn't make payroll.

Affected are Sidney Care and Rehabilitation Center skilled nursing center and assisted living center. The homes' owner, Cottonwood Healthcare, also known as Skyline, which is headquartered in New Jersey, notified the state about its financial crisis, so the state took action.

A Lancaster County judge approved a plan Friday to put the homes in receivership and under the management of Klaasmeyer and Associates while a plan for the homes' future is prepared. The receiverships were ordered after Nebraska Attorney General Doug Peterson filed court proceedings seeking receiverships at the request of Courtney Phillips, the Chief Executive Officer, of the Nebraska Department of Health and Human Services (DHHS).

State officials also are working to ensure that residents of the facilities are receiving proper care.

Ken Klaasmeyer of Klaasmeyer Associates told the Sun-Telegraph Monday that local residents were at no time in danger through the action.

"This has nothing to do with patient care," Klaasmeyer said. "It's all financial."

Klaasmeyer said at this point his team is working to keep staffs in place to continue properly caring for facility residents, "and to be encouraging to both residents and staff."

Klassmeyer said he feels the action gives a light at the end of the tunnel for staff members, residents and families.

"I think they should feel better under receivership than they did before," he said. "Things will be getting paid."

Klaasmeyer didn't have any idea this soon after the action how long the receivership might last, saying it would be "until a long-term solution is found."

Klaasmeyer & Associates will oversee operations of the facilities as a new owner is identified and/or residents are relocated to another facility. DHHS will provide oversight throughout the process to ensure a safe and orderly transition and maintain the safety and well-being of residents. If needed, the Center for Medicare and Medicaid Services provides funds for the facility operations to ensure the safety and well-being of residents.

Other facilities, under the same ownership, are spread across 19 counties in Nebraska. With the exception of Scottsbluff, most are in the eastern half of the state.

The Sidney Care and Rehabilitation Center's Facebook page had the following message on it to address the issue:

"Good afternoon to the families, loved ones of our residents, staff, and concerned citizens of Sidney, surrounding area, and Sidney Care and Rehab.

"First of all, we want to thank you for entrusting us with the care of your family; we continue to be the same staff that has always taken care of, and loved your family members. Our focus will continue to be on our residents.

"We want to assure you the only thing that has changed is the payor source to our company. We will now be overseen and managed, at this time, by a company owned and based out of Omaha, Nebraska.

"The Medical director, CEO, DON, and all of our department managers are working hard with our staff and your loved ones to maintain a calm and care-enriched environment."

The message further directs anyone with questions to contact Klaasmeyer & Associates.