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State may take over financially troubled facility
LTC Liability Monitor, October 27, 2004
Rhode Island's health director Dr. Patricia Nolan is invoking a never-used statute in an attempt to transfer the control of a financially suffering nursing home from its owners to the state, according to The Providence [RI] Journal.
Rhode Island's Skilled Nursing and Immediate Care Facilities Act allows the health director to petition the Superior Court to assign a receiver to take over the business of a facility if she deems it unsafe for residents. Nolan cites a financial review by the Department of Human Services and Internal Revenue Service documents that show the home is nearly $2 million in debt and faces government liens and debts to vendors.
Preliminary findings from a survey by the Department of Human Services found that there are health and safety issues associated with the financial difficulties, reported the Journal.
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