In January, the Villa Care Center, 2721 10th Ave. N., and Villa Cottages, 925 Martin Luther King Drive, were among six Iowa nursing facilities owned by Blue Care Homes LLC that were placed under receivership by the Iowa Department of Inspections and Appeals.

On Thursday, Michael F. Flanagan, a Kansas City attorney who was appointed receiver over the facilities, filed a report and request for partial discharge in Webster County District Court, stating that the last resident was discharged from the Villa on Feb. 20 and that shortly after, all remaining employees of the Villa were terminated and the building was shuttered. That request was approved by District Court Judge Kurt Stoebe on Friday morning.

On Feb. 7, The Messenger filed a Freedom of Information request to the DIA for information and documentation related to the DIA’s notification to residents and their families of the DIA filing for receivership over the nursing homes. The Messenger also asked for the same information in regards to how staff were notified, as well as any documentation related to the DIA’s process of closing the facilities and the process to relocate the residents.

As of Monday — 20 days after the initial request — none of the information or records requested have been produced. A follow up email was sent on Feb. 16 and The Messenger received this response from Stefanie Bond, communications director for the DIA:

-Messenger photo by Kelby Wingert
The front doors of the Villa Cottages were chained shut on Monday. According to court paperwork, the Villa facilities were emptied of residents last week.

“We are still working on your request. Pursuant to Iowa Code Chapter 22, we anticipate responding no later than 20 calendar days from the date of your request.”

According to a Jan. 31 press release from the DIA, the owner of Blue Care Homes LLC, which is based in New Jersey, notified the DIA on Jan. 23 that they were “unable and/or unwilling” to continue operations at the six Iowa facilities. Two days later, the DIA filed petitions for receivership of the facilities in District Court, indicating “the facility is unable and has failed to operate and conduct the health care facility in accordance” with Iowa law.

According to an exhibit submitted to supplement the petition, in the late afternoon of Friday, Jan. 20, counsel for Blue Care Homes contacted the DIA “with emergency concerns” about Blue Care’s ability to meet payroll for its facilities in Iowa. The document states that Sam Haikins, an owner of Blue Care Homes, “promptly ceased communication” with the Blue Care legal counsel and the DIA for “over 24 hours.”

According to the court filing, the DIA learned that Blue Care Homes was also significantly behind on payments to “critical vendors,” “including utility companies that have advised utility shut-offs are imminent.”

On Jan. 26, Flanagan, who has “significant experience in receiverships,” was appointed by the courts to serve as the temporary manager of the six Iowa facilities as they began to relocate the 263 affected residents and close down operations.

According to the DIA, the Villa Care Center had 61 residents and the Villa Cottages had 14.

In December 2021, the Villa was named among the “worst” nursing homes in the nation and fined over half a million dollars for regulatory violations.

According to the Iowa Capital Dispatch, the federal Centers for Medicare and Medicaid Services placed the Villa on a list of the nation’s worst-performing nursing homes called “special-focus facilities.” Nursing homes on that list have “a history of serious quality issues.”

In a 199-page inspection report issued following an August 2021 inspection by the state, violations included failure to respect residents’ rights; failure to provide a safe, clean environment; failure to provide quality care; failure to prevent or treat pressure sores, and failure to ensure residents are free of medication errors, according to Iowa Capital Dispatch.

The facility was also cited for failure to employ sufficient nursing staff; failure to adequately prevent and control infections; failure to provide adequate COVID-19 testing and screening; failure to keep the home free of accident hazards; and failure to employ competent nursing staff.

The Villa Care Center and Villa Cottages were part of the QHC Facilities nursing home chain that declared bankruptcy early last year and was sold last fall to Blue Diamond Equities, also known as Blue Care Homes, for $4.5 million, according to Iowa Capital Dispatch.

Other nursing homes and assisted living facilities that are affected include:

• Humboldt Wellness and Rehabilitation, aka Humboldt Care Center (45 residents as of Jan. 31).

• Timber City Wellness and Rehabilitation, aka Crestridge Care Center in Maquoketa (58 residents as of Jan. 31).

• Madison Wellness and Rehabilitation, aka Winterset Care Center North (52 residents as of Jan. 31).

• Madison Square ALP/D in Winterset (33 residents as of Jan. 31).