Skyline Costs State $475K After Forced Skilled Nursing Takeovers

June 25, 2018, Maggie Flynn, Skilled Nursing News - The state of Pennsylvania is set to pay Complete HealthCare Resources $475,000 after the  company took over nine skilled nursing facilities operated by Skyline Healthcare, the Reading Eagle reported.

The implosion of Wood Ridge, New Jersey-based Skyline Healthcare in South DakotaKansas and Nebraska has also hit Pennsylvania, where the Department of Health (DOH) had to appoint temporary leaders at nine facilities after it became apparent Skyline no longer had the funds to run them.

About 800 residents were being cared for by Skyline in the facilities, according to the Eagle.

Dresher, Pa.-based Complete HealthCare was selected to run the Skyline facilities, which were recently purchased by new owners.  It runs the Berks Heim Nursing and Rehabilitation facility in Reading, PA.

Though the contract for Complete HealthCare’s management ended June 9, the operator stayed on through the transition to the new owners, Reading Eagle reported.  The contract was obtained by the publication under Pennsylvania’s Right-to-Know Law.

The original contract was issued May 14 and called for a payment of $250,000, but was later amended to $475,000 to include costs Complete HealthCare incurred for resident food, medicine and travel, Ed Balliet, Complete HealthCare’s chief operating officer, told Reading Eagle.

“Installing a temporary management company at a long-term care facility is often something that has to take place within a matter of hours,” Pennsylvania DOH Press Secretary Nate Wardle said in an email to Skilled Nursing News.  “In order to ensure we can act quickly, we have several temporary management companies. 

These companies are vetted and stand at the ready to step in when needed.  A company is assigned to a location based on a rotating list, as well as availability.  Complete Healthcare Resources was available and accepted the contract.”

Amending a contract because of changes to scope or length of time is not uncommon, DOH spokeswoman April Hutcheson said to the Eagle.

Pennsylvania has had to step in 13 times with temporary managers at long-term care facilities over the past five years, and in more than half of those cases used Complete HealthCare, Reading Eagle noted.