KDADS Closes Zero Nursing Facilities in Transfer from Receivership to New Owner; Governor Laura Kelly Applauds the Successful Transition

For Immediate Release

October 11, 2019

For more information, contact:
Cara Sloan-Ramos

Public Information Officer

– Kansas Department for Aging and Disability Services (KDADS) Secretary Laura Howard announced today that 15 Kansas nursing facilities in receivership have been successfully transferred — with zero closures — from Skyline Health to new owner Mission Health, a Florida-based company with more than a dozen nursing facilities already operating in the state. Governor Laura Kelly is praising that achievement today.

“Every senior in the State of Kansas deserves a stable, caring environment to call home,” Governor Kelly said. “The staff and leadership at KDADS worked quickly and with determination to ensure stability and quality of care for the more than 800 seniors living in the facilities affected by the Skyline situation. I applaud KDADS for its commitment to the very important mission of protecting Kansans.”

“We know that other states dealing with the issues surrounding Skyline have had to make the unfortunate and sometimes unavoidable decision to close facilities and force residents to find a new place to live,” said KDADS Secretary Laura Howard. “In our case, KDADS was determined that wasn’t going to happen and our staff worked very hard to find an alternative to displacing these seniors from their home. I’m proud today to say we were successful in avoiding that scenario.”

KDADS’ Survey, Certification and Credentialing Commission has performed a thorough review of the requests for change of ownership and has approved licensure applications submitted by Mission Health.

“We’re excited about welcoming these new communities and expanding Mission Health in the state of Kansas,” said Stuart Lindeman, President and CEO of Mission Health Communities. “I am incredibly proud that Mission Health has been chosen to continue to follow these communities from receivership to ownership. We look forward to growing with these local businesses to deliver consistent care and services for patients, families and staff while focusing on an outstanding Mission Experience for everyone involved.”

In March of last year, KDADS moved to take 15 nursing facilities homes across the state into receivership after learning operator Skyline Health, a company headquartered in New Jersey, had fallen behind on vendor bills for basics like food services, medical equipment and utilities, putting residents’ health and safety at risk.

All 15 receivership actions were consolidated in April 2018 by the Kansas Supreme Court into a single action pending before the Johnson County District Court in the case: Laura Howard, Secretary of KDADS v. Spring Hill Care and Rehabilitation Center, LLC, et al., Case No. 18-CV-01688. As a result, the Secretary was appointed as the Receiver for each of the facilities to provide for the administration and oversight for the facilities while in receivership.

The 15 facilities included in the receivership action were:

  • Chase County Care & Rehabilitation Center, Cottonwood Falls
  • Downs Care & Rehabilitation Center, Downs
  • Edwardsville Care & Rehabilitation Center, Edwardsville
  • El Dorado Care & Rehabilitation Center, El Dorado
  • Eskridge Care & Rehabilitation Center, Eskridge
  • Kaw River Care & Rehabilitation Center, Edwardsville
  • Lansing Care & Rehabilitation Center, Lansing
  • Neodesha Care & Rehabilitation Center, Neodesha
  • Parkway Care & Rehabilitation Center, Edwardsville
  • Pittsburg Care & Rehabilitation Center, Pittsburg
  • Spring Hill Care & Rehabilitation Center, Spring Hill
  • Wakefield Care & Rehabilitation Center, Wakefield
  • Wellington Care & Rehabilitation Center, Wellington
  • Wichita Care & Rehabilitation Center, Wichita
  • Wilson Care & Rehabilitation Center, Wilson
The receivership action taken against Skyline prompted the introduction of first-of-its-kind state legislation that sets stricter vetting standards for nursing facility owners and investors. Passed with bi-partisan support, the new law, which went into effect May 9 this year, requires potential nursing facility owners in Kansas to submit detailed financial and historical ownership information before receiving approval.

Additionally, anyone seeking to buy a nursing facility in Kansas is required to provide a list of every other licensed property that he or she owns or has ever owned, either within the state or elsewhere in the United States, including stakes in the operation or the real estate associated with the facility. Prospective buyers must further provide a 12-month operating budget along with proof that he or she has enough working capital to carry out that budget.

The law also makes it easier for the state to revoke, suspend or deny a license and makes an operator ineligible to apply for a new license for 10 years following the termination of a receivership action.