NJ company's woes force state to step in

LINCOLN  — The state of Nebraska is stepping in at Hartington’s nursing home and assisted living facility.

A Lancaster County District judge signed an order Friday placing the Hartington facility, and 20 other Nebraska nursing facilities operated by a New Jersey company, into receivership.

Nebraska Dept. of Health and Human Services was made aware Friday that Skyline, the new owner of the local facility, was not able to meet its payroll. 

At least a dozen Hartington area residents had indicated their payroll checks were not able to be cashed. Some Hartington businesses indicated they also had trouble cashing checks from the facility.

Hartington’s assisted living facility and nine others in the state owned by the New Jersey company were also placed into receivership.

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). 

DHHS Communications and Legislative Services Director Matt Litt said the agency, “determined that receivership proceedings were necessary to protect the health and welfare of the residents of the nursing and assisted living facilities because Skyline was financially unable to pay staff and ensure the future care of the residents.”

 Klaasmeyer & Associates will oversee operations of the facilities as a new owner is identified and/or residents are relocated to another facility, Litt said.

DHHS will provide oversight throughout the process to ensure a safe and orderly transition and maintain the safety and well-being of residents, he said.

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 area facilities affected include:

• Neligh Care and Rehabilitation Center.

• Norfolk Care and Rehabilitation Center. 

• O’Neill Care and Rehabilitation Center.

• Wausa Care and Rehabilitation Center. 

The facilities are all owned by Cottonwood Healthcare LLC, known as Skyline, which is headquartered in New Jersey. 

Skyline purchased the local facility in 2016.

This is a developing story, it will be updated as more information becomes available.