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Two Nursing Homes Agree to Shut Down, Pay $1M in Penalties

Analysis  |  By Jasmyne Ray  
   June 23, 2023

Numerous site surveys found 'substantial' noncompliance with Medicare rules and regulations.

Two Louisville, Kentucky nursing homes—one of which was rodent-infested—have agreed to shut down and pay $1,026,409 in civil money penalties to the Centers for Medicare and Medicaid Services (CMS) for "substantial" noncompliance with Medicare rules and regulations.

From September 2022 to May 2023, the state division of health care performed numerous surveys of Hillcreek Rehab and Care and St. Matthews Care and Rehab Center, which found:

Hillcreek

  • Blood glucometers were used on multiple patients without being disinfected
  • Infested with rodents, with droppings in plain sight in various parts of the facility, including resident rooms
  • Left residents in soiled clothing and linens without appropriate checks from staff
  • Failed to implement care plans for multiple residents, all of whom later suffered serious harm
  • Improperly kept medications past expiration and unlocked
  • Hired personnel despite disqualifying criminal convictions

St. Matthews

  • Failed to protect residents from abuse
  • Blood glucometers were used on multiple patients without being disinfected
  • Personnel files failed to show that complete and proper background checks had been performed
  • Failed to develop and implement care plan interventions for residents with physicians’ orders for oxygen

Both facilities filed federal lawsuits in May 2023, seeking injunctive relief against the United States to help them remain open. After a hearing on June 1, Hillcreek and St. Matthews agreed to terminate their provider agreements with Medicare, dismiss their cases, and close within 30 days.

"CMS takes seriously our role in promoting the health and safety of nursing home residents," Chiquita Brooks-LaSure, CMS administrator, said in a statement. "As was shown during onsite inspections, the residents of these two nursing homes did not receive the care they were entitled to."

Hillcreek and St. Matthews are required to safely transfer Medicare and Medicaid residents to other facilities. Due to their noncompliance with federal rules and regulations, they will have to pay $636,752.75 and $389,656.25, respectively, totaling $1,026,409.

 

“As was shown during onsite inspections, the residents of these two nursing homes did not receive the care they were entitled to.”

Jasmyne Ray is the revenue cycle editor at HealthLeaders. 


KEY TAKEAWAYS

Surveys of each facility found that they were in noncompliance with numerous Medicare rules and regulations.

Hillcreek and St. Matthews will have to pay hundreds of thousands of dollars in civil penalties.


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