Owner of Eight Iowa Nursing Homes Files For Bankruptcy
Repeated ongoing violations and other issues leading to fines over several years have led to this for an Iowa nursing home and assisted living center chain.
QHC has filed for bankruptcy protection
Clive-based QHC Facilities operates Crestview Acres in Marion as well as nursing facilities in Tama, Madison, Humboldt, Jackson, Webster, and Polk counties and two assisted living centers.
Last June, we told you about five QHC nursing homes in Iowa that ranked among the worst in the nation, each for multiple years running.
In December, we had the story that one of QHC's facilities, Grand View Care Center in Shenandoah was hit with violations resulting in fines of up to $300,000. The Fort Dodge Villa also garnered 22 total federal and state violations, making it one of the worst-ranked according to the Centers for Medicare and Medicaid Services’ Special-Focus Facility (CMS).
The Cedar Rapids Gazette says that as of December 29, 2021, things have not improved for QHC. The company has filed for Chapter 11 bankruptcy claiming $1 million in assets, with $26 million in liabilities.
QHC owes big
The company is in part blaming what it calls "significant fiscal challenges” and "crippling staffing and employee retention issues and increased operating expenses", on the Coronavirus pandemic, as they have had increased expenses incurred from the purchase of personal protective equipment, increased labor costs and more.
The bottom line
The bankruptcy filing means that QHC is "seeking an expedited sale of operations under which patient care will continue uninterrupted and employee and vendor relationships will continue." They will continue to be able to pay for staff wages and operational expenses but the hope is that the bankruptcy filing and eventual sale of this struggling chain of senior care facilities will put it in better financial standing, and more importantly, safer living and working conditions for its residents and staff.